Export Negotiations with China for Nvidia's H200 Chips

It is reported that President Donald Trump's administration is evaluating the possibility of allowing Nvidia Corp. to trade its H200 artificial intelligence chips with China.

The details of the situation indicate a significant deviation from the previous stance on semiconductor export controls by the Trump administration. However, this potential move has not yet materialized into a definitive decision, so discussions are ongoing.

The ongoing talks are seen as a major opportunity for Nvidia CEO Jensen Huang. Huang has been lobbying for a loosening of export controls for a long time.

With the emergence of these discussions, Nvidia shares rose by up to 2% on Friday, reaching as high as $184.29, as reported by Bloomberg.

However, Nvidia stated that the current regulations are restrictive regarding offering a data center product in China, which has led to openings for rapidly growing foreign competitors in the market.

The sale of H200 chips to China would significantly ease trade restrictions aimed at limiting the United States' advancements in the field of artificial intelligence. However, this move is expected to face resistance from anti-China factions in Washington.

As of now, there has been no statement regarding the H200 discussions from the White House or the Commerce Department, which regulates exports.

The implications of this situation are substantial. The sale of Nvidia’s H200 artificial intelligence chips to China could not only open a new market but also increase its sales and profits. However, this could also escalate tensions between the U.S. and China due to the ongoing trade war and the sensitive nature of artificial intelligence technology.

Additionally, reactions are likely to come from lawmakers and other stakeholders concerned about China’s increasing capabilities in the field of artificial intelligence.