ISTANBUL

 Nvidia said Tuesday that it will resume sales of its H20 artificial intelligence (AI) chips to China after the US government pledged to remove licensing restrictions.

"The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon. Finally, (CEO Jensen) Huang announced a new, fully compliant NVIDIA RTX PRO GPU that 'is ideal for digital twin AI for smart factories and logistics,'" the company said in a statement.

In April, Washington restricted Nvidia from selling its H20 chips to China in an escalation of its tech war with Beijing, saying it would be required to have an export license "for the indefinite future" to sell the chips to the country.

Nvidia said it expected to write down charges of up to $5.5 billion in its fiscal first quarter due to US export requirements now imposed on its H20 chips for the Chinese market.

According to Nvidia's statement, Huang met with US policymakers and President Donald Trump, reiterating Nvidia's support for the administration's initiatives to boost onshore manufacturing and domestic AI infrastructure, create employment and guarantee that America leads the world in AI.

In Beijing, Huang also had meetings with representatives of the government and business community to talk about how AI will increase output and provide new opportunities. The talks focused on how scientists throughout the world can develop safe and secure AI for everyone's benefit.

"As Huang noted during his visits, the world has reached an inflection point — AI has become a fundamental resource, like energy, water and the internet. Jensen emphasized Nvidia’s commitment to support open-source research, foundation models and applications which democratize AI and will empower emerging economies in every region, including Latin America, Europe, Asia and beyond," it noted.

“General-purpose, open-source research and foundation models are the backbone of AI innovation,” Huang said. “We believe that every civil model should run best on the U.S. technology stack, encouraging nations worldwide to choose America.” 

After the announcement, Nvidia's shares were up more than 4% at Tuesday's close.

Last month, Washington and Beijing reached an agreement on a draft trade framework that permitted the US to loosen its restrictions on tech exports and China to reduce its export rules on rare earths.