As we mentioned in April, the United States has shot itself in the foot by preventing NVIDIA from selling its GPU chips, which is used as AI Excellers in China. This part of the story is easy to understand because it is well known that the United States tries to prevent China from getting modern chips among these concerns that they will be used to improve the country’s army. But as a result of this ban, Huawei received more orders in connection with the series of AI ACCALSE inside China. Many of these sales go to Nvidia except the fact that the US company, as said, is banned from selling its GPUs in China. But in a statement released last night, NVIDIA, the world’s most valuable public trade company, says it is entering the US government to send its H20 chips to China. The company expects to receive a license soon.
NVIDIA, which hopes to sell H20 chips in China, is most capable that can be sold in the country. The reason is that both President Donald Trump during his first term, and because of the laws enacted by President Biden. These chips are not as powerful as NVIDIA’s GPUs are sold out of China.
Newodia CEO Jensen Huang is currently in Beijing and is ready to talk during a program held in the city tomorrow. The company issued a statement stating, “The US government has assured NVIDIA that licenses will be given, and NVIDIA hopes to start delivery soon.” Huang has said that if China fails to sell its chips in China, NVIDIA can lose its status as a global AI leader.
A report published today states that Chinese companies are hurrying to give NVIDIA GPU orders. These orders have to be sent to the US government for approval. Chinese firms are allegedly ready to submit orders, including tricky parent by thermons and Chinese class tensions. For the financial year ended on January 26, 2025, Nodia earned $ 17 billion from China, which is equivalent to 13 % of the company’s global sales.
Chinese tech companies are still in favor of NVIDIA’s computing platform, known as CUDA (Computer Unified Device architecture). CUDA allows developers to take advantage of the parallel processing used by the NVIDIA GPUs. This type of process allows to handle numerous tasks simultaneously using a number of tasks. This is very important for AI, where billions and trillions of operations are handled at the same time.
Investors are reacting to this new shares by increasing NVIDIA shares to 3.98 %. The company is now worth $ 4.16 trillion.
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