Nvidia secures U.S. approval to sell its H20 AI chip to China after CEO’s meeting with President Trump, unlocking billions in revenue and reigniting U.S.–China tech dynamics.
The U.S. has given Nvidia the green light to resume shipments of its H20 AI chip to China a critical move that could unlock billions in potential revenue. The H20 GPU, designed specifically to meet U.S. export rules, is now being delivered to Chinese giants like Alibaba and Tencent. It’s the first significant sign in months of thawing in tech trade between the two powers. The approval follows a lengthy freeze triggered by Washington’s stricter controls aimed at slowing China’s AI progress. For Nvidia, the green light doesn’t just protect its China pipeline it hints at a potential shift in U.S. tech policy as geopolitical tensions grow.
The breakthrough reportedly came after a private conversation between Nvidia CEO Jensen Huang and President Donald Trump. Although specifics haven’t been made public, insiders indicate Huang warned of the economic fallout tied to prolonged AI decoupling. Trump, known for favoring negotiation over confrontation, is thought to have nudged the Department of Commerce toward issuing a limited H20 GPU export license. If the reports prove accurate, it could point to a shift toward a more measured strategy one that considers both economic impact and national security. Huang’s involvement reinforces how tech executives are now central to the evolving Nvidia AI chip China story and the wider U.S.–China tech détente.
This deal could signal the start of a fragile U.S.–China tech détente, or it may simply buy time. Nvidia stands to gain right away, but the broader direction of policy remains unclear. Beijing hasn’t imposed any countermeasures yet, suggesting a brief chance for dialogue. At the same time, U.S. lawmakers appear split on how to interpret the long-term risks. For Nvidia, the approval marks a short-term advantage and a calculated risk, placing the company and Jensen Huang squarely in the middle of the Nvidia AI chip China standoff, a contest of influence that is far from resolved.