Nvidia announces plans to renew AI chip exports to China, reversing earlier U.S. limits

American chipmaking powerhouse Nvidia (NVDA) announced Monday that it will restart sales of its artificial intelligence chips to China, a move that comes as Washington and Beijing navigate high-stakes trade negotiations.

The decision follows Nvidia CEO Jensen Huang’s meeting with President Donald Trump at the White House last week. Huang has repeatedly warned that restricting U.S. technology exports to China could erode America’s leadership in artificial intelligence, while also costing the company billions in lost revenue.

Rival chipmaker AMD confirmed Tuesday it too plans to resume shipments of its AI processors to China, citing progress in license approvals by the Department of Commerce. “We applaud the Trump Administration’s commitment to U.S. AI leadership,” AMD said in a statement.

Treasury Secretary Scott Bessent described Nvidia’s export restrictions as a “negotiating chip” in broader U.S.-China trade talks, which recently produced an agreement to lower tariffs. Commerce Secretary Howard Lutnick added that the resumption of Nvidia’s sales was tied to a deal with Beijing over rare earth magnets.

China’s rare earth exports have been a flashpoint in negotiations. In exchange for boosting shipments of these critical materials, the U.S. agreed to ease curbs on microchip design software, ethane, and jet engines.

Nvidia, now the world’s most valuable company with a market capitalization topping $4 trillion, has become central to the global AI race. Its chips power everything from chatbots to robotics and autonomous vehicles. The company’s H20 chip, released last year to maintain access to the Chinese market, accounted for 13% of Nvidia’s sales in 2024.

But in April, the White House required special licenses for H20 exports, forcing Nvidia to halt shipments. The chip is widely believed to have supported DeepSeek, an advanced Chinese AI model. On Monday, Nvidia said it had reapplied for licenses and received assurances they would be approved, allowing deliveries to resume “soon.”

Huang has argued that blocking U.S. firms from selling to China risks accelerating Chinese innovation. “Just as the American dollar is the global standard, we want the American tech stack to be the global standard,” he told CNN’s Fareed Zakaria in an interview aired Sunday.

The company estimates it lost $2.5 billion in revenue from halted H20 sales in the first quarter of 2025 and expects another $8 billion hit in the second quarter. Nvidia has since stopped including China in its sales forecasts due to ongoing uncertainty.

Huang is scheduled to hold a media briefing in Beijing on Wednesday during a supply chain expo, marking his second visit to China this year.