(Jan 14): The Trump administration moved closer to allowing Nvidia Corp to sell its H200 artificial intelligence (AI) chips to China by issuing revised criteria for winning US government approval to ship the processors to Chinese buyers.
Under a regulation published on Tuesday, the Commerce Department said it will review applications for AI chip exports to China on a case-by-case basis, easing a previous US stance presuming denial of any request for permission to sell to customers in the Asian country.
The measure sets licensing requirements for Nvidia and AI chipmaking rival Advanced Micro Devices Inc (AMD), which is seeking clearance for sales in China of its MI325X chip. The stipulations include certifying that there’s no shortage of the processors in the US. Companies seeking export approval must show that production for Chinese customers won’t displace manufacturing capacity that could be used to produce chips for domestic buyers.
The companies will be constrained in how many chips they can ship to China, with a limit of no more than 50% of the total products made for the US market. Under the rule, overseen by the Commerce Department’s Bureau of Industry and Security, companies must also “employ rigorous know-your-customer” procedures to prevent unauthorised use of the technology.
The chips will also be required to undergo third-party testing in the US.
In a statement, an AMD spokesperson said, “We comply with all US export control laws and policies.” Nvidia didn’t have an immediate comment.
See also: Meta begins job cuts as it shifts from Metaverse to AI devices
The regulation marks a key step toward carrying out US President Donald Trump’s decision last month to let Nvidia and other chipmakers sell advanced AI processors to China. It represents a significant shift from policies imposed starting in 2022 to keep Beijing and its military from accessing the most powerful US technologies.
Introduced more than two years ago, the H200 would be the most advanced AI chip to be legally exported to Chinese customers. Nvidia sells its more-advanced Blackwell generation in the US and is preparing to shift to an even speedier family of chips named after the astronomer Vera Rubin.
Uploaded by Tham Yek Lee
