Commerce to open up exports of Nvidia H200 chips to China

Seeking a compromise over controlling exports to China, the White House plans to direct the US Department of Commerce to allow the export of powerful Nvidia GPUs that are roughly 18 months behind its most advanced offerings, according to a person with knowledge of the plan.

The move, which would send Nvidia H200s to China, seeks to find a middle ground between those who oppose exports of any advanced AI chips and those who worry that restrictions will merely hand the market to Chinese competitors. It also aims to satisfy the Chinese government, which has blocked imports of less powerful chips, such as Nvidia’s H20.

The move comes after comments from Commerce Secretary Howard Lutnick that the decision is in the hands of President Trump. According to a person familiar with the matter, Lutnick is supportive of the strategy. A spokesman from Commerce declined to comment. The H200 exports could bolster Nvidia’s revenue by opening up a huge market for its chips while ensuring US technology remains the standard worldwide.

The US enacted strict export restrictions under the Biden Administration in an effort to prevent China from catching up on AI. But some in the White House believe those restrictions have more or less failed, according to people familiar with their thinking.

Despite the restrictions, Chinese companies like DeepSeek and Alibaba have produced world class AI models and companies like Huawei have made rapid progress in producing hardware to fill the void left by the export restrictions.

Proponents of the restrictions argue that they served to slow China and give US companies a head start on gaining global market share during a critical period.

In the meantime, the US has struggled to revamp its domestic chip manufacturing supply to counter overreliance on Taiwan Semiconductor Manufacturing Company, or TSMC, and China has exerted leverage over the US with its stranglehold on rare earth minerals needed for batteries and other critical technologies.

Spokespeople for Nvidia and the White House did not immediately respond to a request for comment.