The Trump administration has approved the export of Nvidia’s second most powerful artificial intelligence chips to China, according to the federal register. This decision paves the way for shipments of the H200 chip to commence, potentially boosting Nvidia’s market presence in China. Nvidia is a technology company that designs and manufactures graphics processing units (GPUs) for gaming and professional markets, as well as system on a chip units (SoCs) for the mobile computing and automotive market. The H200 is their second-most powerful AI chip.
However, the approval comes with specific conditions. Before the chips can be exported, a third-party testing lab must evaluate and confirm their technical AI capabilities. This measure aims to ensure compliance with regulations and prevent misuse of the technology. The additional layer of inspection means the chips may be delayed, but likely not for very long.
Furthermore, Nvidia is required to certify that there is an adequate supply of H200 chips within the United States to meet domestic demand. Chinese customers must also demonstrate that they have implemented ‘sufficient security procedures’ to protect the technology and prevent unauthorised access or transfer. These procedures help to secure the technology and data and prevent it from being stolen.
These regulations reflect the ongoing efforts to balance economic opportunities with national security concerns in the context of AI technology. The arrangement allows Nvidia to access the Chinese market while implementing safeguards to protect sensitive technology and ensure responsible use of AI capabilities.
