In a surprising policy shift from the U.S.’s years-long technology restrictions on China, President Donald Trump in July allowed Nvidia to resume sales of its H20 AI chip tailored for the Chinese market, reversing the ban his administration had imposed in April. Still, instead of celebrating, Beijing’s reaction has been notably lukewarm, even though it has long pressed Washington to relax the strict export controls. That’s because China is concerned about alleged security risks tied to Nvidia’s H20 chips, s ...

Nvidia's H20 AI chip situation is not ideal, but it's significantly better than having no H20 sales. Nvidia (NVDA -0.44%) and fellow graphics processing unit (GPU) maker Advanced Micro Devices, or AMD, have agreed to give the U.S. government 15% of their revenue from sales of their respective artificial intelligence (AI) data center chips designed for the China market in exchange for obtaining export licenses for these chips, according to the Financial Times, which first reported the story on Sunday night. ...