Nvidia is set to start shipping chips back to China again after months of this thing being in limbo and really for the last few years Nvidia has been trying to figure out all the regulatory restrictions that the United States is putting on it So we're gonna get into the background of where it's been in the past Why they're able to start shipping this again what changed and also how many billions of dollars? This is going to add to Nvidia's overall revenue This is really crazy numbers and the reason why the background track is also quite a crazy story So we're gonna be diving into all that on the podcast today But before we did I wanted to mention if you want to try all of the top AI models So I'm gonna get subscriptions to every single platform that exists out there I recommend check, you know, AI box AI This is my own platform that I'm building we're currently in beta and you can try the top 40 AI models including a model from Nvidia called Numatron 70 B that they put out There's a ton of other models from all the top companies like anthropic opening I met a Google that you'd expect is well a bunch of interesting ones For image generation from black forests labs ideogram We have text to speech from open AI and 11 labs and tons of other models So if you want to try out all that for $20 a month You don't need subscriptions to every platform go check out AI box and a lot's more exciting stuff launching from my startup in the future Alright, let's get into what's going on with Nvidia So this is going to be Monday that Nvidia made this big announcement and essentially they're able to start they're able to restart the sale of their Each 20 AI chips to China So this is something that they were formerly selling essentially and then the Trump administration put a bunch of restrictions on they eventually Change those restrictions and they're able to start selling again So the company essentially is expecting to receive all the licenses from the government soon that they need to ship these out Nvidia is also creating a new RTX pro chip. What's designed specifically for the Chinese market? So they're saying you know this is fully compliant with all the regulations basically the regulations came out and a lot of this also came out I think under Biden with the chips act and other things But essentially the government said we don't want China to you know compete with us with our adversary and be you know number one in AI We want to give American companies a leg up So they essentially just restricted what in video was allowed to ship to China They weren't allowed to ship the most powerful chips now Did this stop China like no we see companies like deep seek and other big companies coming out of China with pretty powerful AI And a lot of this is due to the fact that companies would just register just purchase chips in Singapore Which doesn't have any restrictions They ship up to China and just kind of make a profit I think one of the big things that shocked a lot of people is the fact that 30% of Nvidia's revenue came from Singapore It's like oh wow Singapore accounts were like almost as much as any other country in the entire world But really Singapore is just kind of filling for China.
So there's a bunch of restrictions There's a bunch of loopholes and video denies any wrongdoing in this situation, but regardless it is a tricky situation They're trying to they're trying to work with the US government and get around this So these new chips are supposed to be supposed to be you know I'm fully compliant and able to ship to China. So these are the H20 chips Of course, there's a huge kind of fight between the US and China most of Nvidia's advanced AI processors Are not allowed to be shipped to China The H20 is the most powerful chip that they can legally sell to China under the current export controls But even this got blocked for a while So I think we saw a bunch of big companies in China including by dance Alibaba Tencent all of them have been like super aggressively stockpiling the H20 for the first three months of this year because they're anticipating much stricter export controls And basically this is because this chip in particular has a really good memory bandwidth compared to Chinese alternatives What you get in China and also Nvidia has a really widely adopted software ecosystem that makes it much easier to deploy So if you don't have this it's quite tricky and being able to use Nvidia chips It speeds up, you know, you're able to not just have the hardware, but also all of them videos software, which is really impressive So all the back and forth began in April the Trump administration restricted even H20's, right? So H20's were selling like hotcakes to every single Chinese, you know big tech company They were stockpiling them April he shut it down and some people say that this potentially cost Nvidia 15 to 16 billion dollars in revenue Just since April so you can imagine how much they want to get these things back on the market and selling again Judging by how much you know Chinese firms are trying to get we're trying to get them in the first quarter of this year These are very important chips that they still really want But the thing that thing is interesting is the original move that he just did in April was trying to target chips that were exceeding specific performance thresholds So that was anything that had total memory bandwidth of 1400 gigabytes per second or an input output bandwidth of 1,000, 100 gigabytes per second So they essentially you know, it's like can be too fast can't be too powerful But these researchers were really short lived now a lot of people will point to one specific meeting between Jensen Wang and Trump Jensen essentially went to a It was like a million dollars per head at this dinner at Mar-a-Lago where Trump was there and Jensen Hwang went there and shortly after The you know the administration put a pause on the ban so some people are kind of pointing to that and pointing to I don't know All sorts of people are like, you know, this is a complicated balance between government and industry I mean at the end of the day Jensen Wang has some people are out of whatever Just in my opinion, there's no you know, it's no surprise what went to that dinner with this issue tried to bring up to Trump And probably had a conversation about it So whether it makes sense or not was then up to them to decide I think it's kind of interesting But one other thing that people are pointing out is out of that dinner not just the chip ban kind of getting paused there was also another outcome that was shortly and shortly announced afterwards because within a week of You know, this kind of report being published about in videos doing that Nvidia announced plans to build an AI server in the US which was worth as much as $500 billion over the next four years And they're also gonna be doing this with help from TSMC time one semiconductor company So two things happen one that chip export got paused and two Nvidia promise a $500 billion chip manufacturing Project or I guess an AI server build out in the US. So this is pretty interesting This is pretty interesting for a lot of people You know, I would assume there's some sort of negotiation or there was nothing formal that was kind of published But you could assume that in videos like hey if we want to sell these chips It's you know hurting a company based on American American jobs and Trump's like alright Well, maybe you spent $500 billion and we'll figure something out So however the conversation went down and some people are like no nothing happened It was just a coincidence.
I personally don't really believe it I believe there's probably some sort of deal that was struck in the process but regardless This is kind of where the chips are on the ground So some people are criticizing this especially because we see China's AI capabilities are growing much stronger We see deep-seak who came out, you know, really kicking took the world by storm with their model when it first came out And that was built like they essentially deep-seak was completely trained using in videos H H800 chips which are more powerful than the H20s But the US banned the sales of those back in October 2023 somehow the Chinese suppliers managed to figure out a workaround to continue to get them So I'm not personally, you know shocked by this and to be honest like a lot of this I feel like is sort of theater You know, I mentioned what's going on with Singapore But like in video wants to be able to have a more direct more open line of sale probably directly into China They can maybe cut out the middleman and save some money or make more money or sell more But like at the end of the day China's gonna get their hands on advanced chips No matter what even if they had to build it themselves I don't think you could just permanently cripple China's AI ambitions personally even with export controls But in the meantime because it does take some time to stand these companies up It does take some time that anybody it does have superior technology ever anyone else So this definitely is the fastest way to to you know for anybody to get the chips there for the Chinese companies to get these kind of powerful chips So what's interesting is Jensen Huang has been meeting with officials both in Washington DC and in Beijing this month And he's emphasized quote the benefits the AI will bring to business and society worldwide This is a big thing. He's talking about I think this is definitely very interesting as we have US policymakers attempting to make this sort of Balancing act with national security and really powerful commercial interests given everything we've seen in 2025 I don't think that this trend is going to slow down at all I bet we'll see more export restrictions on a video on certain ships while also perhaps as we get better and better ships They'll be able to ship like faster faster ones better kind of the older older model And maybe that will give American companies a slight edge even if it's just that it takes you know months longer to get ships to China We're gonna be months ahead and I'm sure there's gonna be a whole battle that continues throughout the throughout the rest of the Decade to be honest in this in this regard so in a case if you learned anything new if this was an interesting episode to you What's going on with Nvidia make sure to subscribe over on YouTube and drop a review over on Apple or Spotify helps other channel A ton so thank you so much for tuning in to the AI chat podcast I hope you have a fantastic rest of your day and if you're looking for a platform to test out all the models Make sure to check out a box a I I leave a link to that in description So you can go check out for a dollar a month for four of the top a models Thanks for tuning in and I'll catch you next time