The White House decided not to ban NVIDIA from selling H20 GPUs to China after CEO Jensen Huang met with President Trump last week. These special chips represent the most advanced NVIDIA technology currently allowed for Chinese markets. The administration nearly announced these restrictions this week until the meeting changed their plans. NVIDIA shares jumped almost 6% following this news, recovering from earlier losses caused by Trump's tariff announcements.
Reports suggest that NVIDIA promised new investments in American AI data centers to secure this deal. President Trump has pushed companies to build more facilities inside the United States as part of his economic strategy. Chinese businesses had already started stockpiling these H20 chips, expecting potential bans. Server companies warned customers about possible shortages as demand increased rapidly.
Chinese AI company DeepSeek uses these chips with custom programming to achieve results comparable to Western systems. Local Chinese manufacturers such as Huawei and SMIC remain significantly behind in developing similar technology. The January stock market selloff happened when investors learned DeepSeek could match Western AI performance with fewer resources. This situation highlights how important Chinese revenue remains for NVIDIA's financial health.
Reports suggest that NVIDIA promised new investments in American AI data centers to secure this deal. President Trump has pushed companies to build more facilities inside the United States as part of his economic strategy. Chinese businesses had already started stockpiling these H20 chips, expecting potential bans. Server companies warned customers about possible shortages as demand increased rapidly.
Chinese AI company DeepSeek uses these chips with custom programming to achieve results comparable to Western systems. Local Chinese manufacturers such as Huawei and SMIC remain significantly behind in developing similar technology. The January stock market selloff happened when investors learned DeepSeek could match Western AI performance with fewer resources. This situation highlights how important Chinese revenue remains for NVIDIA's financial health.
