It is also worth noting that H20 chips are manufactured by Nvidia and are known for being in high demand because of their integration with the proprietary AI software stack of the Nvidia chip company, which is integrated and used throughout the global AI ecosystem.
Sources told Reuters that Chinese firms, including tech giants ByteDance and Tencent, are already preparing to submit applications for the H20 chips. A registration list system created by Nvidia will reportedly manage which Chinese companies are eligible. ByteDance, however, denied that it is currently applying, while Tencent declined to comment. Nvidia also refrained from commenting on the process, Reuters said.
Huang, who is currently in Beijing and is scheduled to speak at a supply chain event on Wednesday, told Chinese broadcaster CCTV that China’s AI landscape is “massive, dynamic, and highly innovative,” and home to a significant share of the world’s AI researchers.
According to Nvidia’s latest annual report, China contributed $17 billion in revenue in the fiscal year ending January 26—about 13% of the company’s total sales. The potential return to the Chinese market is seen as vital to Nvidia’s global dominance, especially as domestic players like Huawei aggressively court local developers.
Beijing had halted rare earth exports in March amid trade tensions, but signs of thaw are emerging following the latest deal involving chip sales and mineral shipments. Rare earths are a group of 17 metals crucial for a wide range of technologies, including smartphones, electric vehicles, and military systems.
Amid growing scrutiny, Huang’s visit is being closely followed in both countries.
Rival chipmaker AMD also announced that it is awaiting Commerce Department clearance to resume shipments of its MI308 AI chips to China. Its shares rose 7% on Tuesday, while Nvidia stock closed 4% higher, remaining steady in after-hours trading.