In a stunning reversal of U.S. trade policy, Nvidia Corp. and Advanced Micro Devices Inc. are poised to resume sales of advanced AI chips to China, marking a significant shift in the ongoing tech rivalry between Washington and Beijing. The move comes after months of regulatory uncertainty, with Nvidia announcing plans to restart shipments of its H20 graphics processing units, specifically designed for the Chinese market to comply with export controls. This development follows a high-profile meeting between Nvidia CEO Jensen Huang and President Donald Trump, where assurances were reportedly given that export licenses would be approved, as detailed in Nvidia’s official blog post on promoting AI collaboration.
The decision underscores the Trump administration’s evolving stance on semiconductor exports, which had previously tightened under both Biden and early Trump policies to curb China’s AI advancements. According to Reuters, Chinese firms are now rushing to secure orders for Nvidia’s H20 chips, anticipating a surge in demand for data center infrastructure amid Beijing’s push for domestic AI capabilities. Meanwhile, AMD has confirmed it will restart sales of its MI308 AI accelerators to China, following similar U.S. Commerce Department approvals, as reported by CNBC.
The Road to Reversal: From Bans to Breakthroughs
This policy pivot traces back to April 2025, when the U.S. expanded restrictions on Nvidia’s H20, effectively halting sales just months after its introduction as a watered-down alternative to more powerful models like the H100. The New York Times noted that these curbs were part of broader efforts to limit Beijing’s access to cutting-edge technology, fearing its use in military applications. However, recent diplomatic engagements, including Huang’s visit to Washington, appear to have thawed relations, with Nvidia’s blog highlighting the CEO’s advocacy for “responsible AI development” across borders.
For AMD, the MI308 represents a key player in the AI chip arena, offering high-performance computing for training large language models. CNBC reports that AMD’s clearance came swiftly after Nvidia’s, suggesting a coordinated U.S. approach to balance national security with economic interests. Industry analysts point out that China’s vast market—accounting for up to 20% of global chip demand—makes outright bans unsustainable for U.S. firms facing revenue pressures.
Market Ripples and China’s AI Hunger
The resumption has sparked immediate market reactions, with Nvidia shares jumping 5% in after-hours trading, per TechCrunch’s coverage of the regulatory whiplash. Chinese tech giants like Baidu and Tencent are expected to ramp up purchases, fueling data centers in remote regions as Beijing aims to close the AI gap with the West. A Bloomberg analysis earlier this month estimated China seeks over 115,000 such chips for ambitious projects, despite past smuggling attempts to bypass bans.
Yet, this thaw isn’t without caveats. Sources from Reuters indicate that sales will be monitored closely, with potential caps on volumes to prevent misuse. AMD’s MI308, while powerful, is a step below Nvidia’s Blackwell series, which remains restricted, ensuring the U.S. retains a technological edge.
Geopolitical Implications and Future Uncertainties
Looking ahead, this development could reshape global supply chains, encouraging other chipmakers to lobby for similar exemptions. Nvidia’s blog emphasizes Huang’s vision of AI as a “global good,” but critics worry it undermines long-term U.S. leverage. TechCrunch warns of “months of regulatory whiplash,” suggesting volatility could return if U.S.-China tensions escalate over Taiwan or trade tariffs.
For industry insiders, the key takeaway is resilience: Nvidia and AMD’s ability to navigate policy minefields highlights the interplay of innovation and geopolitics. As China accelerates its chip self-sufficiency with homegrown alternatives, the window for U.S. dominance may be narrowing, even as sales resume. With approvals in hand, shipments could begin within weeks, potentially injecting billions into these companies’ coffers while fueling the next phase of the AI arms race.