Nvidia (NVDA) “must live with” certain guardrails on the sales of its artificial intelligence accelerators to China, Commerce Secretary Howard Lutnick said on Tuesday.
“The license terms are very detailed,” Lutnick said, according to comments obtained by Reuters. “They’ve been worked out together with the State Department, and those terms Nvidia must live with.”
Lutnick was asked if the Chinese could be trusted to abide by the certain restrictions on the H200 GPUs, and he demurred to President Donald Trump on the matter.
President Trump approved the sale of Nvidia’s H200s to China last year in exchange for 25% of the revenue from the chips. Last month, the Chinese government informed Alibaba (BABA), Tencent (TCEHY), and others they can begin to prepare orders for Nvidia’s H200 GPUs. However, the fate of H200 sales to ByteDance (BDNCE) is still up in the air, as Nvidia has reportedly not agreed to proposed conditions set by the Trump administration for their use.
