WASHINGTON, Nov 21 (Reuters) – โThe Biden administration is โconsidering allowing Nvidia to sell it’s H200 artificial intelligence chips to China, according to sources familiar with the matter, potentially easing tensionsโ over technology restrictions.
The potential move โคrepresents a shift in U.S. policy aimed at preventing China from gaining a military advantage through access to advanced โsemiconductors. While restrictions remain in place on Nvidia’s โขmost powerful A100 โand H100 chips, permitting sales of the H200 – a less capable butโ still advanced chip – could offer a compromise. This decision comesโ as the U.S. โขseeksโ to balance national securityโ concernsโ with the economic implications of a complete technology blockade, and amid ongoing discussions with allies about a unified โapproach to โฃChina’s technological advancement.The move could impactโ the competitive landscape of theโข global AI market, potentially allowing Chinese companies to continue โdeveloping AI applications, albeit at a somewhat โขslower pace.
Sources say the deliberations are ongoing and no final โคdecision has been โฃmade. The administration is weighingโ the risks and benefits, considering potential backlash from lawmakersโ whoโ advocate for aโฃ harder line on China. The H200 chip wasโข specifically designed to comply with U.S. โexport controls, making it a potential avenue for continued sales without directly violating existing restrictions.
Nvidia did โขnot promptly respond to a request for comment. The Commerce Department, which oversees export controls, declined to comment.