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Senior WriterAn engineer by training. A science and tech journalist by passion, vocation, and conviction. I've been writing professionally for over two decades, and I suspect I still have a long way to go. At Xataka, I write about many topics, but I mainly enjoy covering nuclear fusion, quantum physics, quantum computers, microprocessors, and TVs.
Alba Mora
WriterAn established tech journalist, I entered the world of consumer tech by chance in 2018. In my writing and translating career, I've also covered a diverse range of topics, including entertainment, travel, science, and the economy.
Nvidia’s H20 AI GPU has emerged as the company’s crucial asset in China. The Biden administration implemented the Advanced Computing Chips Rule in late 2023, leaving Nvidia with only this less-powerful AI option if it wanted to keep selling to its Chinese customers. Notably, it’s proven to be quite popular over the past few months.
On paper, the H20 chip is significantly less powerful than the more advanced AI GPUs that Nvidia typically sells. As mentioned earlier, this is precisely why the Department of Commerce has permitted its sale in China for the past several months. Some experts initially thought that the H20 would get a lukewarm reception in the Asian country due to its limitations. Quite the opposite.
According to Semiconductor Business Intelligence, H20 sales have surged by 50% quarter-on-quarter since it was introduced into the Chinese market in mid-2024. This makes the chip Nvidia’s most successful product at the moment. In contrast, sales of the more powerful H100 GPU are growing at a rate of only 25% quarter-over-quarter.
However, since the end of 2024, the H20 chip has been under scrutiny by the DOC.
CEO Jensen Huang Achieves One of His Most Improbable Successes
In December 2023, then-Commerce Secretary Gina Raimondo issued a warning to Nvidia: “If you redesign a chip around a particular cut line that enables them to do AI, I’m going to control it the very next day.” This was a clear reference to Nvidia. President Donald Trump’s return to office hasn’t offered any solution to the conflict. Instead, it threatens to permanently end the sale of the company’s H20 GPU in China.
For Nvidia, this restriction would be a significant setback. The company’s business in China has struggled over the past two years due to U.S. sanctions. Halting the sale of the only GPU that has supported Nvidia in China for the last few months would definitely be a tough blow. Under these circumstances, Nvidia CEO Jensen Huang recently met with Trump with a clear goal: persuading him to permit Nvidia to continue selling its H20 chip in China.
Reports indicate that Commerce Secretary Howard Lutnick planned to impose an export ban on the company’s GPU just a few days ago. In a surprising turn of events, the Trump administration has decided to temporarily suspend the ban, allowing Nvidia to continue selling in China for now.
The circumstances surrounding Huang’s achievement aren’t the usual kind. He directly discussed the negotiations with Trump during a dinner at the Mar-a-Lago resort restaurant in Palm Beach, Florida, which is owned by the president. Huang and the other attendees reportedly paid $1 million each to attend the dinner. In the end, the Nvidia CEO has secured a good deal for his company to continue selling its H20 GPU in China, at least for now. Nvidia has also committed to investing more in U.S. AI data centers.
Image | Nvidia
Related | Nvidia Eyes Another Disruptive Technology After the Success of Its AI Chips: Quantum Computers
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