NVIDIA Requires 300,000 Additional H20 AI Chips for China

Sure, here it goes:

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Okay, so NVIDIA’s in a wild race right now. It’s like they’re trying to juggle flaming torches while riding a unicycle, or something equally chaotic. Anyway, just a bit ago, they got the green light to sell their H20 AI chips to China again. It’s like the White House suddenly decided April 2025 was overrated and hit the undo button. So now, NVIDIA’s scrambling, trying to keep up with all these unexpected orders from China. I mean, surprise, surprise, right?

Oh, and there’s talk that they’ve stashed away a mountain of these chips, like 600,000 to 700,000. But apparently, that’s not enough—they went ahead and ordered another 300,000 from TSMC. So, yep, demand’s through the roof. NVIDIA’s CEO, Jensen Huang, was like “Nah, we’re not restarting production,” but guess what? Looks like he spoke too soon.

Do we even remember 2024 when they sold a million of these things? Feels like a century ago. And now with all this demand, it’s going to be ages, like nine months, before the production line’s running smoothly again. Typical, right?

But it’s not all peachy for NVIDIA. They’re stuck waiting for export licenses from the U.S. Department of Commerce. Imagine having all these chips but needing a permission slip — that’s business for you. They’ve been hinted that the licenses are “in the mail,” fingers crossed.

Now, why these chips are so popular in China, you ask? Seems they’re the consolation prize to the top-tier GPUs the U.S. barred from selling there. Kind of like how you have to settle for decaf when real coffee’s a no-go. China’s using them because they don’t exactly have other choices. Big names like Alibaba and Tencent are snatching them up, and even Huawei’s on the fast track developing its 910C to fill the gap.

And, because why not, there’s this bustling market for secondhand NVIDIA GPUs in China. Ain’t that just perfect? It’s a jigsaw puzzle where all pieces are from different boxes, but somehow they fit.

The ban reversal? Oh man, there’s some juicy negotiation stuff there, involving rare earth magnets and competitive posturing. NVIDIA’s argument was all about U.S. tech superiority, with Huang’s poetic lines about the “U.S. technology stack” — sure, classic motivational quotes and all that. Pretend it’s a chess game where someone’s trying to checkmate AI dominance.

Not everyone’s thrilled though. Security experts are throwing a mini fit, worried about giving China a leg-up in the AI race. It’s like handing your competitor the playbook — that’s their worry anyway.

And gosh, don’t even get me started on NVIDIA’s financial woes from the initial ban. Losing billions is like dropping a crystal vase — no fun. They’re keen on not repeating that mess. It’s all a heady cocktail of strategy, money, and potential economic fallout. The Trump administration seems to think selling these slightly less awesome chips to China is better than letting Huawei run wild.

So, let’s see how it plays out. Feels like we’re spectators in a corporate thriller, and who knows what the next twist will be? Buckle up, folks!