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NVIDIA has opted to discontinue the production of the H20 GPU for the Chinese market, citing formidable challenges that rendered continued manufacturing economically unviable. Nonetheless, the Trump administration recently granted NVIDIA permission to resume shipments of the H20 GPU to China, on the stipulation that the company remit 15% of its revenue from chip sales in China to the U.S. government. Prior to this, the H20 chip faced supply constraints due to U.S. export control risks, which led to a staggering $5.5 billion loss for NVIDIA. Following China-U.S. economic and trade negotiations, the U.S. approved the sale of H20 chips to China, albeit with financial conditions attached. Jen-Hsun Huang, the founder and CEO of NVIDIA, announced this development during his visit to China and disclosed that the company is expanding the capacity of the H20 supply chain.
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