According to multiple media reports, Nvidia (NVDA) has secured approval from government officials in Beijing to sell its second-most powerful artificial intelligence (A.I.) microchip in China.
The regulatory approval enables Nvidia to resume sales of the H200 chip in the world’s second biggest market.
China previously generated 13% of Nvidia's annual revenue. However, the company and its microchips have gotten caught up in trade tensions between the U.S. and China.
Despite strong demand from Chinese companies and U.S. approval for exports, Beijing had hesitated to accept imports of Nvidia’s H200 chips within China.
But now, it appears that the situation has resolved, paving the way for Nvidia to resume chip sales in the nation of 1.4 billion people.
There are media reports that Nvidia is also preparing a version of its Groq A.I. microchip that can be sold in the Chinese market.
At the company’s GTC developer event that is currently taking place, Nvidia CEO Jensen Huang said that the company has been licensed for “many customers in China” for the H200.
Nvidia had been waiting for licenses from both the U.S. and China for more than six months
Now, Nvidia is reportedly moving quickly to also prepare a version of the Groq A.I. chip that can be sold to China.
The Groq microchips are used for inference, where A.I. systems answer questions, write code and carry out tasks for users.
NVDA stock has been rangebound since last summer and largely trading between $180 U.S. and $185 U.S. per share. The stock is currently at $181.93 U.S.
