Nvidia to Resume H20 Chip Sales Amid Rare-Earth Element Trade Talks
Nvidia's decision to restart sales of its H20 AI chip to China is linked to ongoing trade discussions involving rare-earth elements. The move follows an initial plan to withdraw from the Chinese market announced in June. Rare-earth elements, crucial components in technology, are at the center of trade debates between the U.S. and China.
Rare-earth elements like lanthanum and cerium, largely mined in China, are crucial for technology, including electric vehicle batteries. Nvidia initially planned to withdraw from the Chinese market but later applied to resume sales of its H20 AI chip to China. This decision is linked to trade talks with China on rare-earth elements, according to U.S. Commerce Secretary Howard Lutnick. AMD also intends to restart sales of its MI308 AI chip in China.
The debate over rare-earth elements has become a focal point in U.S.-China trade discussions. Some, like Congressman Raja Krishnamoorthi, are concerned about the implications of this decision, citing potential risks of sharing advanced technologies with foreign adversaries. However, Lutnick reassured that China would only receive Nvidia's 'fourth best' chip.
Recent speculations suggested Nvidia might develop a new AI chip specifically for the Chinese market to comply with U.S. export regulations. The U.S. is still finalizing its AI chip export rules, with the Trump administration revoking the Biden administration's AI Diffusion Rule in May. There are talks of imposing stricter restrictions on AI chip exports to countries like Thailand and Malaysia to curb smuggling activities.
TechCrunch contacted Nvidia for a statement on the matter.
According to the source: TechCrunch.
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