Nvidia has received approval from the United States government to resume limited exports of certain AI chips to China, marking a partial shift in policy after earlier restrictions significantly reduced the company’s ability to supply advanced hardware to one of its largest markets. The updated rules allow Nvidia to sell specific models, including the H200, under conditions that comply with export control thresholds. The company said it will work within the guidelines set by US regulators to ensure all shipments remain compliant.
The decision comes after months of uncertainty following restrictions introduced to limit China’s access to high performance chips used for training and deploying advanced AI models. The previous rules prevented Nvidia from exporting its most capable GPUs to Chinese customers, affecting demand from technology firms, cloud service providers and research institutions in the region. While the new approval does not permit the sale of Nvidia’s most powerful chips, it provides an opening for more constrained models that fall below defined performance limits.
Analysts say that the move reflects a calibrated approach by the US government, which aims to maintain national security objectives while allowing American technology companies to operate in international markets under controlled conditions. The updated approvals allow Nvidia to supply hardware that supports commercial AI development without enabling capabilities that policymakers believe could contribute to strategic or military applications.
Nvidia stated that it will begin working with customers in China to assess demand and ship eligible products. The company emphasised that the approved models remain compliant with all export regulations and do not include high performance variants that exceed the compute thresholds identified by US authorities. Nvidia said it will continue monitoring regulatory developments and adjusting its supply plans as needed.
The approval also provided a short term boost to Nvidia’s stock, which rose following the announcement. Investors have been watching the company’s China exposure closely, as the region historically accounted for a significant portion of its data center revenue. Restrictions introduced last year contributed to uncertainty around future sales, prompting Nvidia to redesign its chips to comply with export rules. With the latest approval, some of these redesigned models may now be eligible for export, although with restricted performance.
Industry observers note that the AI hardware market remains deeply influenced by global policy changes. Export controls have reshaped supply chains, with companies in China seeking alternative solutions, including domestic accelerators and partnerships with local semiconductor firms. The partial easing of restrictions could help Nvidia maintain relationships with Chinese customers, but analysts say the long term market environment is likely to remain complex.
The Chinese market has continued to grow rapidly as companies invest in AI infrastructure, cloud computing and model development. Restrictions on advanced chips have created challenges for firms seeking to train large models or run compute intensive workloads. Nvidia’s approved shipments may address some of this demand, but capabilities will remain limited relative to what is available in unrestricted markets.
The US government has said that it will continue tightening or adjusting export rules depending on national security assessments and technological developments. Officials noted that the goal is not to halt commercial activity entirely but to prevent the transfer of computing capabilities that could support military use cases. The updated rules reflect ongoing efforts to define which technologies are considered sensitive.
Nvidia has been working to diversify its global operations as export restrictions evolve. The company has increased shipments to other regions, strengthened relationships with data center operators outside China and accelerated development of products that comply with regulatory limits. While China remains an important market, Nvidia has said that its long term growth will continue to be supported by AI adoption across sectors such as healthcare, automotive, enterprise software and scientific computing.
Technology experts say that the decision to allow limited exports highlights the difficulty of balancing innovation, market access and geopolitical considerations. AI infrastructure relies heavily on high performance computing, and restrictions that shape which countries can access advanced hardware influence global development trajectories. Companies like Nvidia are navigating an environment where commercial strategy and regulatory policy are increasingly interconnected.
The partial approval is expected to create short term relief for some Chinese companies that rely on Nvidia hardware. However, analysts caution that broader restrictions remain in place, and the approval does not represent a full reopening of the market. Chinese semiconductor manufacturers are likely to continue investing in alternatives to reduce dependence on US suppliers, while regulators in the United States are expected to refine rules further as AI technologies evolve.
Nvidia said it remains committed to complying with all global regulations while supporting customers within permissible frameworks. The company plans to continue developing solutions that balance performance with export compliance, ensuring that it can serve international markets responsibly.
The updated approval underscores the shifting nature of AI hardware access and global tech competition. As the United States and China continue to navigate complex policy considerations, companies in both countries will likely face ongoing adjustments in how AI technologies are developed, sold and deployed.