Nvidia is restarting manufacturing of its H200 AI chip, designed to comply with U.S. Export restrictions to China, CEO Jensen Huang announced Tuesday at the company’s GTC conference. The resumption of production follows the receipt of licenses from the U.S. Government and confirmed purchase orders from Chinese customers, reversing a halt initiated last year due to increasing regulatory hurdles in both countries.
Huang stated that Nvidia’s supply chain is “getting fired up” as it gears up to fulfill these orders. The H200 chip is based on Nvidia’s Hopper technology. The company had previously halted manufacturing due to the complex regulatory landscape, a move that led to a $5.5 billion charge, according to reports.
The move comes after a period of uncertainty regarding U.S. Export controls on advanced semiconductors to China. Last year, new rules from the Trump administration initially forced Nvidia to halt sales to China, requiring licenses for exports. A subsequent shift in policy in December allowed Nvidia to ship the H200 chip, contingent on the U.S. Receiving a 25% cut of sales, but implementation had been stalled until recently.
While the China chip sales are not currently factored into Nvidia’s forecast of over $1 trillion in revenue expected from its Blackwell and Rubin AI chips by the complete of 2027, the resumption of H200 production represents a significant development for the company. Huang emphasized that the $1 trillion projection reflects growing global demand for AI, stating, “In fact, we are going to be short. I am certain computing demand will be much higher than that.”
Huang addressed concerns about the potential impact of AI on the labor market, suggesting that robots will fill existing labor shortages, particularly in manufacturing. He theorized that increased automation would drive economic growth and ultimately lead to more hiring, albeit with a shift in job roles towards managing and supervising AI systems. However, he acknowledged that job losses are inevitable as AI disrupts legacy technologies, citing recent declines in tech stocks for companies like Salesforce and Workday following the emergence of Anthropic’s AI.
During the conference, Huang as well noted the current pace of work in the age of AI, questioning when people have time for leisure. “When was the last time you sat on a rocking chair on your porch and drank a glass of lemonade and watched the sun go down?” he asked.
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