It is a major victory for the world’s most valuable company in the ongoing technological war. The Trump administration is said to have given an NVIDIA license to resume selling its special AI pieces to the lucrative Chinese market, a decision that follows months of esteemed lobes and direct calls to the White House by Director General Jensen Huang.
The move is a massive financial relief for the AI giant. It allows NVIDIA to avoid a projected revenue of 8 billion revenue for the fiscal year and re-enter a market, which Huang itself estimates, worth $ 50 billion in the coming years.
According to The financial timesThe advance came after Huang’s visit to the White House on August 6 to meet with President Donald Trump. Just two days later, the trade department, which oversees export controls, reportedly issued the first licenses for Nvidia to sell its H2O pins in China.
The high quality background
This decision is the latest chapter in the ongoing US-Chinese Technic War. The core thing is the fear that advanced US technology could be used by Beijing to develop a sophisticated military AI. To prevent this, the United States has imposed strict export controls, blocking the sale of highest AI chips to China.
Nvidia’s most powerful processors, as well as its Blackwell series, are prohibited for export to China. In response, Nvidia cleverly designed the H2O chip, a less powerful version of its advanced technology, specifically tailored to comply with the original export rules.
However, the Trump administration took an even more difficult stance in April, banning the sale of even these de-operated H2O chips. The move sent shocking waves through Nvidia. The company was forced to stop shipments, resulting in a load of $ 4.5 billion for excessive inventory and purchasing bonds. In May, Nvidia warned investors that the restrictions would cost the company about $ 8 billion in revenue for the full fiscal year.
The power of personal diplomacy
Reverse this policy has taken months of intense diplomacy and lobbying, culminating in Huang’s personal visits to the White House. The CEO’s charming offensive seems to be working, drastically changing President Trump’s perspective on the company. During an AI Summit of White House last month, Trump acknowledged that he initially considered doing an anti -trim action against the ragged giant before he became acquainted with its CEO.
“I said,” look, we’ll break this guy, “before I learned the facts of life,” Trump said about Huang during a talk. “I said,” Who is he? What is his name? How the hell is Nvidia? I’ve never heard of it before. ”
The president continued, “Then I got to know Jensen, and now I see why,” inviting Huang, who was in the audience, to stand up. This meeting seems to be the turning point, convincing the administration that protecting Nvidia’s financial health was crucial to maintaining the leadership of the United States in the Global AI race.
What does that mean for the world’s largest company
For Nvidia, the news is a massive calm. The company, which last month became the first to reach a market value of $ 4 trillion, is now hovering around $ 4.45 trillion. With the revenue of $ 8 billion now avoided and the $ 50 billion Chinese market has reopened, investors will look closely as Nvidia reports their quarterly gains later this month. Another strong report could easily push the AI title beyond the unprecedented threshold of $ 5 trillion.
Nvidia and the business department did not immediately respond to requests for comment.
