US allows Nvidia AI chip sales to China with new restrictions
The US Commerce Department on Tuesday approved Nvidia to sell its advanced H200 AI chips to Chinese buyers under specific restrictions, reversing a previous policy of automatic denial. Sales require proof of 'sufficient' US supply and must be approved case-by-case. However, Beijing is actively pushing domestic alternatives—Chinese officials reportedly urged companies to pause H200 purchases while deliberating rules that would mandate buying from local rivals. Nvidia CEO Jensen Huang argued for the policy shift, stating AI systems worldwide should be built on US technology. The H200 remains 18 months behind Nvidia's most advanced chips, which remain banned. Meanwhile, Chinese startup Zhipu recently used Huawei chips to train its new image generator, claiming it's the first state-of-the-art model built entirely on domestic silicon. Trump announced a December agreement with Xi Jinping allowing H200 exports, with the US government taking a 25% cut of sales—a move Democrats call a national security mistake. For Nigerian tech companies and investors: This creates potential access to advanced AI infrastructure but signals growing US-China tech decoupling. Will you bet on US-supplied AI hardware despite political uncertainty, or accelerate adoption of emerging Chinese alternatives like Huawei? The GPU market remains dominated by Nvidia, but geopolitical pressure is fragmenting global supply chains.