He will be able to continue selling his H20 GPU for AI in China, although he has cost him a 1 million dinner per diner

The GPU for applications of artificial intelligence (AI) H20 is the salvation of Nvidia in China. Since the sanctions package officialized by the administration of Joe Biden entered into force November 16, 2023 This is THE ONLY SOLUTION FOR IA That Jensen Huang’s company can sell to its Chinese clients. And, in addition, during the last months it is being a real success.

This chip on paper is much less capable than the most sophisticated GPUs that Nvidia currently sells. In fact, this is the reason why the US Department of Commerce has allowed its sale in China in recent months. Its limitations invited us to initially assume that their reception in this Asian country would be warm, but It has not been so at all.

According to Business Intelligence semiconductorsince this chip reached the Chinese market in mid -2024 its sales have grown 50% quarter to quarter, which positions it as the most successful Nvidia product today. However, sales of The H100 GPUwhich is more powerful, “only” grows 25% quarter after quarter. In spite of everything since the end of 2024, the H20 Chip is undergoing the scrutiny of the US Department of Commerce.

Jensen Huang has added one of his most unlikely successes

Gina Raimondo, the Secretary of Commerce during the mandate of Joe Biden, He made this warning to Nvidia In December 2023: “If redesign a chip so that it can be used for AI, we will control it the next day.” The direct allusion to the Jensen Huang company is evident. The return to the US government of Donald Trump and his collaborators far from appeasing the panorama promised to end once and for all for the sale of the H20 GPU in China.

For Nvidia this restriction would be a very hard blow. His business in this Asian country has rented during the last two years as a result of the sanctions imposed by the US, and stop selling the GPU that during the last months He has sustained this company in China I would make a difficult wound to heal. These are the circumstances in which Jensen Huang has met with Donald Trumpand has done so with a firm purpose: to ensure that the government allows Nvidia to continue selling its H20 chip in China.

The Trade Department, which under Trump’s mandate is being led by Howard Lutnick, intended According to several filters to prevent this week that this GPU continue to arrive in the country of Xi Jinping. However, against all forecast the US administration has suspended, at least temporarily, its export prohibition of this chip. This conclusion is surprising, but there are even more circumstances in which Jensen Huang has achieved his goal.

And it is that the general director of Nvidia has approached this negotiation directly with Donald Trump during a dinner at the restaurant of the Mar-A-Lago tourist complex housed in Palm Beach (Florida), which is owned by the latter. It has transcended that Huang and the other diners They have paid a million dollars each for attending this dinner. But Huang has compensated. Nvidia can continue selling its H20 GPU in China. At least for the moment. Although, yes, he has pledged to invest more money in data centers for the US.

Image | Nvidia

More information | Npr

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