President Donald Trump has finally allowed the sale of NVIDIA's H200 artificial intelligence (AI) chip to China, with the US receiving a 25% cut from each sale. This is a larger cut than the 15% cut announced last August.
The announcement was long-awaited because NVIDIA was previously prevented from exporting AI chips to China, causing their sales in the country to plummet to zero a few months ago.
The H200 offers higher processing power than the H20 chip, which was only made for China. However, its capabilities are still behind the NVIDIA Blackwell Ultra B300 that was launched earlier this year.
Although NVIDIA has been granted permission to sell the chip to China, it is still questionable whether they will have customers. The Chinese government is encouraging companies to use locally produced chips such as Huawei with electricity rates of up to 50% off as an incentive.
