US approves sale of Nvidia's advanced H200 chips to China (www.bbc.com)

The US government has approved Nvidia's sale of its advanced H200 AI chips to China, following a series of restrictions aimed at curbing technological advances in the Chinese military and tech sectors. This decision, announced by the Department of Commerce, comes with the condition that there is adequate supply of these processors within the US. The approval marks a shift in policy, as President Trump had previously imposed similar restrictions but is now allowing sales to "approved customers" in China while imposing a 25% fee on profits. This development is significant for the AI/ML community as it highlights the ongoing geopolitical tensions surrounding advanced semiconductor technology. The H200 chip, which ranks just below Nvidia's cutting-edge Blackwell processor—currently still banned for sale in China—represents a critical asset in the global AI race. Nvidia CEO Jensen Huang has argued that engaging the Chinese market is vital for maintaining the US's competitive edge in technology. However, US officials remain wary of potential military applications of these chips, reflecting the delicate balancing act between fostering innovation and protecting national security interests.