According to NPR, Nvidia has received authorization to continue selling its H20 graphics processing units in China after CEO Jensen Huang visited Mar-a-Lago. Huang attended a dinner at the resort last Friday, with a cost of $1 million per attendee, although it remains uncertain if he had any discussion with President Trump.
While the White House has not officially commented on this decision, there were plans to imminently impose restrictions on H20 sales in China. NPR reports that Huang proposed increased investment in U.S. AI data centers, especially as Microsoft is reducing its involvement and shifting tariffs threaten to increase construction costs.
Currently, the United States restricts Nvidia’s export of its advanced H100 chips to China due to concerns about their potential use in warfare and surveillance, given China’s history of repressing its citizens, particularly the Uyghur minority. However, Nvidia has persuaded the U.S. government to permit sales of modified chips with reduced capabilities, such as the H20, to the significant Chinese market.
To provide a sense of China’s market significance for Nvidia, The Information recently reported that Chinese firms purchased $16 billion worth of H20 chips in early 2025, likely anticipating a potential sales ban. The price paid by Nvidia for the potential upside seems justifiable, considering the magnitude of sales involved.
Similar to Tim Cook of Apple, Jensen Huang has carefully navigated the China issue. Earlier this year, he quietly visited the country to emphasize its critical role in Nvidia’s development. He highlighted that over 1.5 million developers in China utilize CUDA, Nvidia’s software toolkit, and that the company collaborates with more than 3,000 startups within China. Huang stated, “Over the past two decades, we have significantly contributed to the modernization of one of the world’s most dynamic markets, and we take immense pride in our role within this ecosystem.”
The export restrictions to China have had mixed outcomes. While they might slow China’s progress in weaponry and surveillance, technology in the country has adapted to work with limited resources. The development of DeepSeek R1, a lightweight AI model created with under $6 million using compliant H800 chips, exemplifies this capability.
The H20 chip is especially effective for inference tasks, similar to those used by OpenAI’s o1 and DeepSeek’s R1 models. Furthermore, Huawei found opportunity in these export restrictions. After facing limitations during President Trump’s first administration, the company successfully launched a smartphone with its own chip and operating system, a significant achievement many doubted could be realized quickly.
While Huang’s efforts with the Trump administration seem to have succeeded, not all technology leaders have seen similar results despite making similar efforts. President Trump’s administration continues to scrutinize big tech over allegations of censoring conservative views. Meta, for instance, faces a looming FTC antitrust trial, notwithstanding substantial donations and efforts by Mark Zuckerberg to gain favor with President Trump.
Ultimately, this development reflects the complexities in influencing the Trump administration’s policies. It raises questions about why President Trump would permit China, viewed as a geopolitical competitor, to continue buying AI chips, which potentially impacts the trade deficit amidst tariff impositions.
