US Tightens Grip: Nvidia's H20 Chip Exports to China Restricted

The US has imposed restrictions on Nvidia's H20 chip exports to China, targeting AI technology trade amid tariff disputes. The H20, although not matching Nvidia's latest, plays a vital role in Chinese AI advancements. This move aligns with the US's broader strategy against China's tech sector.

In a strategic move amid escalating trade tensions, the United States has imposed restrictions on the export of Nvidia's H20 chips to China. This measure forms part of Washington's broader strategy to curb Beijing's access to advanced AI technology, Radio Free Asia (RFA) reported.

Nvidia, a leading entity in AI chip development, disclosed that the US government notified them on April 9 about the need for government approval to export H20 chips to China. This restriction, effective indefinitely, underscores US concerns over potential Chinese utilization of the chip for enhancing supercomputing capabilities.

Despite its limited computing power compared to Nvidia's cutting-edge Blackwell chip, the H20 holds strategic importance due to its high-bandwidth memory. The chip recently gained prominence after being used by Chinese firm DeepSeek for developing a competitive AI model. Major Chinese companies like Alibaba, Tencent, and ByteDance have significantly invested in H20 chips, ordering over USD16 billion worth in early 2023, RFA noted.

These restrictions follow the US's initial October 2022 ban on AI chip exports to China and reflect ongoing trade challenges between the two nations.

(With inputs from agencies.)