WASHINGTON, Nov 21 (Reuters) – The Biden administration is considering allowing Nvidia to sell it’s H200 artificial intelligence chips to China, according to sources familiar with the matter, potentially easing tensions over technology restrictions.
The potential move represents a shift in U.S. policy aimed at preventing China from gaining a military advantage through access to advanced semiconductors. While restrictions remain in place on Nvidia’s most powerful A100 and H100 chips, permitting sales of the H200 – a less capable but still advanced chip – could offer a compromise. This decision comes as the U.S. seeks to balance national security concerns with the economic implications of a complete technology blockade, and amid ongoing discussions with allies about a unified approach to China’s technological advancement.The move could impact the competitive landscape of the global AI market, potentially allowing Chinese companies to continue developing AI applications, albeit at a somewhat slower pace.
Sources say the deliberations are ongoing and no final decision has been made. The administration is weighing the risks and benefits, considering potential backlash from lawmakers who advocate for a harder line on China. The H200 chip was specifically designed to comply with U.S. export controls, making it a potential avenue for continued sales without directly violating existing restrictions.
Nvidia did not promptly respond to a request for comment. The Commerce Department, which oversees export controls, declined to comment.
