The U.S. administration initiated a review for the potential approval of Nvidia’s H200 AI chips for sale to China. The H200 is the company's second-most powerful chip. This action follows the President’s statement earlier this month indicating a willingness to allow sales, provided they include a 25% fee.
The Commerce Department sent the license applications to the State, Energy, and Defense Departments. These agencies now have 30 days to complete their review. The final decision on the sales rests solely with the President.
This potential policy reversal carries significant implications for Nvidia, which considers China a major market. The previous administration restricted advanced AI chip sales, citing national security concerns. Unlocking this market could generate substantial revenue for the company. Nvidia shares rose approximately 1.5% in pre-market trading following the news.