China Pushes Back Against Nvidia H20 Chips in Twist to Trump Deal

Good luck trying to follow the twists and turns in the US-China chip maneuvers. US President Donald Trump may have wrangled an agreement from Nvidia to share 15% of the revenue from sales of its H20 AI accelerator in China, but will there still be enough buyers to make that deal worthwhile?

Over the past few weeks, Chinese authorities have sent notices to a range of firms discouraging use of the less-advanced semiconductors, Bloomberg News reported today. The guidance was particularly strong against the use of H20s for any government or national security-related work by state enterprises or private companies. Beijing’s push also affects AI accelerators from AMD, one of the people said, though it’s unclear whether any letters specifically mentioned AMD’s MI308 chip. Along with Nvidia, AMD recently secured Washington’s approval to resume lower-end AI chip sales to China, on the controversial and legally questionable condition that they give the US government a cut of the related revenue.