Jensen Huang said he was “surprised” by questions about his company’s chips, given China’s eagerness to acquire them for advanced A.I systems.

Nvidia CEO Jensen Huang praises TSMC as US weighs CHIPS Act equity stakes, while Nvidia faces China setback on H20 chip production.

However, Huang's extensive lobbying paid off. Nvidia agreed to a 15% revenue-sharing agreement with the U.S. government, which allowed the company to resume sales of the H20 chip to China. While the deal could weigh on Nvidia's margins, it marks the continuation of a potentially lucrative opportunity, but there's more good news.

In an unprecedented “revenue-sharing” deal, Nvidia and Advanced Micro Devices agreed to remit 15% of their revenue from AI chips sold into China to the U.S. government.

Nvidia has reportedly suspended production of its China-focused H20 AI chip as Beijing pushes domestic alternatives and analysts warn the uncertainty could hit its Q3 outlook.

Nvidia was blindsided earlier this year when the US government enacted tougher restrictions on selling artificial intelligence chips to China. The restriction prevented Nvidia from selling its H20 chip within the Middle Kingdom,

Nvidia Corporation faces China pressure & AI competition, with challenges ahead. Learn a way to profit regardless of market direction. Click for my NVDA update.

Nvidia has been in the news due to its China business and is reportedly developing a new chip for the country.