This article first appeared on GuruFocus.
NVIDIA Corporation (NASDAQ:NVDA) can sell some of its advanced AI chips into China, but it won’t be on its own terms. Commerce Secretary Howard Lutnick made that clear Tuesday, saying Nvidia must live with the guardrails attached to those licenses.
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According to Reuters, Lutnick stressed that the rules governing H200 GPU exports are detailed and were coordinated with the State Department. In other words, Washington is watching closely. When asked whether China could be trusted to stick to the restrictions, Lutnick pointed the question back to President Donald Trump.
Last year, Trump approved limited H200 sales in exchange for 25% of the related revenue. Since then, companies like Alibaba (NYSE:BABA) and Tencent have reportedly been told they can prepare orders. The situation with ByteDance remains less clear, as negotiations continue over compliance terms.