Nvidia has resumed sales of its H20 chips in mainland China after the lifting of US export restrictions. This move may help address hardware shortages affecting the country’s AI development.

According to a Morgan Stanley report, China’s AI spending by major cloud service providers is projected to increase by 60% to 380 billion yuan (US$53 billion) this year.

However, Nvidia has informed Chinese customers of a limited supply of H20 chips. The company does not plan to restart production of the model, as reported by The Information.

Jensen Huang, Nvidia’s CEO, stated to Chinese media that the company is working to restore production capacity. He noted that the process from wafer orders to finished chips takes about nine months. Nvidia has not provided additional comments on the situation.

The H20 chip, launched in early 2024 to comply with US export control rules, was essential for AI training among Chinese tech companies before sales were halted in April. Analysts suggest that the US government’s recent approval to resume sales could enhance China’s access to computing power.

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