The company has sought permission to resume H20 GPU sales, and Washington has assured Nvidia that the licences will be issued.

(GlobalTimesAI.com) — In what could be a major boost for China’s artificial intelligence ambitions, American chipmaker Nvidia is set to restart shipments of its powerful H20 graphics processing units (GPUs) to Chinese companies — a move expected to ease supply concerns for the country’s fast-growing AI sector.

According to industry insiders, Nvidia has applied for new export licences to sell the H20 GPU in China, and the US government has assured the company that these licences will be granted. The approval comes as welcome news for Chinese tech giants and AI startups, many of which have faced tighter US restrictions on access to high-end semiconductors in recent years.

The H20 GPU is part of Nvidia’s advanced lineup of AI chips capable of powering large-scale deep learning, data training, and cloud computing tasks. For Chinese companies racing to develop next-generation AI applications — from chatbots and self-driving cars to smart factories — a steady supply of these high-performance chips is crucial.

Industry analysts say the decision reflects the delicate balancing act Washington must manage — restricting sensitive technology exports while still supporting American companies like Nvidia, which earns significant revenue from China’s massive market for semiconductors.

“This is a much-needed breather for Chinese AI developers,” said a Shanghai-based tech consultant. “It gives companies some breathing room to keep pace with global competition while local chipmakers catch up.”

With the H20 back in circulation, Chinese AI firms are expected to step up efforts to train larger language models, expand cloud services, and boost domestic innovation.

Meanwhile, industry observers note that this green light does not mean all restrictions are off the table. The US continues to keep tight controls on the sale of Nvidia’s most advanced chips, such as the A100 and H100 series, which are seen as vital for training cutting-edge generative AI models.

Still, the return of the H20 marks an important win for China’s AI ecosystem at a time when the country is pushing hard to become more self-reliant in core technologies, including semiconductors and high-performance computing.