The announcement follows months of harsh U.S. export restrictions meant to curtail China's access to advanced artificial intelligence technology, which had previously lowered Nvidia's estimated sales volume by $15 billion.
In a statement, Nvidia said it has submitted applications to the US government to restart sales of the H20 chips and that it anticipates receiving the requisite licenses soon.
The company said that American officials had assured it that licenses would be issued, with deliveries beginning shortly. Nvidia previously criticized the April restrictions, which had blocked H20 chip sales to China.
New A.I. Chips Introduced to Chinese Market
In addition to its H20 work resumption, Nvidia has unveiled a new model of AI chip tailor-made for US regulatory needs. This chip, dubbed RTX Pro GPU, is customized for the Chinese market and well suited to smart factories and logistics tasks.
The company emphasized that the RTX Pro GPU is in full compliance with US export regulations.
Nvidia had also been said in May to be reading a cheaper chip, the RTX Pro 6000D, for the Chinese market. The H20 is said to have reduced specs and a cheaper manufacturing process compared to the chip.
Despite the stiff competition from Chinese companies such as Huawei, Nvidia is favored over other tech companies in China for its high-end CUDA computing platform.
The H20 chip, which Nvidia had created specifically for China after US restrictions late last year, had been banned in April, with Nvidia taking a $5.5bn write-down of stock.
China's Market Remains Key for Nvidia's Growth
Nvidia CEO Jensen Huang is now in Beijing, where he's set to speak to a supply chain expo--his second visit to China this year. The enormous, innovative market and wealth of AI researchers in China make the State indispensable, Huang said at the event.
It is imperative that American companies remain engaged with China, he said.
Huang's journey has generated headlines in both China and the United States. American senators recently warned him against meeting with companies with ties to China's military or intelligence services.
China was responsible for $17 billion of Nvidia's revenue in the last fiscal year ending Jan. 26, or 13% of total sales. Ushering in a thaw over trade disputes, including China easing restrictions on rare earths and the United States allowing for the resumption of chip design software sales to China, Nvidia says it wants to "continue serving the Chinese market while adhering to all relevant U.S." prohibitions.
But experts warn that uncertainties in American-Chinese ties persist, and Chinese companies may still look for other sources that help further insulate their supply chains.
