Nvidia and AMD to Reduce AI Chip Prices for Chinese Market by 15% Compared to U.S. Sales
After a months-long hiatus, Nvidia has confirmed it will restart the sales of its H20 chips to China, following a policy change that has drawn criticism from national security experts and former officials. The decision comes as part of ongoing trade negotiations and is subject to strict conditions, including licenses issued by the U.S. government.
The resumption of sales was first reported by the Financial Times, with a Nvidia spokesperson stating the company's commitment to following U.S. regulations. The policy change links the resumption of sales of high-performance AI chips from Nvidia and AMD to Howard Lutnick, the US Secretary of Commerce.
The H20 chip, designed for high-performance AI computing, is among the advanced AI chips that Nvidia and AMD will resume selling to China. Both companies will share 15% of their revenue from these sales with the U.S. government.
The decision to restart sales has been met with concerns from several experts who argue that any sale of advanced AI chips to China could weaken U.S. strategic advantages. They have warned that once shipped, the chips' ultimate use would be difficult to control.
In April, the Trump administration restricted the sale of certain AI inference chips to China, a ban that was lifted months later after Nvidia pledged to invest up to $500 billion in U.S. data centers. The recent focus has shifted from national security concerns to oversight and tariffs regarding the sale of these chips to China.
It's worth noting that Nvidia has not shipped H20 chips to China for months. The negotiations also involve discussions about rare-earth elements, crucial for products like electric vehicle batteries and renewable energy technology.
Recent concerns have been raised about China's control over much of the global supply of these resources, making access to them a strategic concern. The decision to restart H20 chip sales to China is linked to these trade negotiations, but the exact details of the agreement have not been disclosed.
The resumption of sales is not without controversy, with some arguing that it could potentially compromise U.S. national security. However, for Nvidia, the decision represents a significant step in re-establishing business relations with one of the world's largest markets for AI technology.
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