NVIDIA can start selling its H20 AI GPU to China again after gaining approval to do so from the US government.

What Happened: Economist Craig Shapiro, in a detailed X thread, declared, “China just outmaneuvered the U.S. — again. Rare earths for AI chips,” unveiling a backchannel ... assuming a hit from H20 chip’s excess inventory and purchase obligations.

Data center operators in China, which use Nvidia’s H20 chips to crunch data for various AI services, have been struggling to find a local alternative that is as good as the U.S. company’s chips.