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Nvidia eyes revenue boost with advanced chip sales to China

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Nvidia is looking to ship more advanced chips to China than its current generation, CEO Jensen Huang said on Wednesday, as he looks to revitalize sales in the world’s second-largest economy.

Nvidia plans to ship more advanced chips to China than its current offerings, CEO Jensen Huang said on Wednesday, as the company seeks to revive sales in the world’s second-largest economy.

His remarks follow Nvidia’s announcement on Monday that it will resume sales of its H20 AI chip in China, after a previous ban was lifted.

The H20 is a scaled-down chip tailored for artificial intelligence tasks, designed to meet U.S. export control requirements.

“And the reason for that is because technology is always moving on … today Hopper’s terrific but some years from now we will have more and more and better and better technology, and I think it’s sensible that whatever we’re allowed to sell in China will continue to get better and better over time as well,” he said referencing Hopper, Nvidia’s chip architecture that the H20 is built on.

Nvidia has found itself at the center of escalating U.S.-China trade and tech tensions, facing multiple rounds of export restrictions that have barred it from selling its most advanced chips to China.

In response, the company developed compliant alternatives like the H20.

However, the curbs have taken a financial toll. In May, Nvidia recorded a $4.5 billion writedown on unsold H20 inventory and noted that its revenue for the last financial quarter would have been $2.5 billion higher without the export limitations.