Nvidia set to resume China chip sales

Market Dynamics & Strategic Shift - Nvidia expects to resume sales in China, focusing on maintaining its software ecosystem, specifically CUDA [1] - The US administration is shifting from hard bans to controlled diffusion, aiming to keep American technology entrenched globally, even in rival markets [7] - This strategy aims to prevent adversaries like Huawei from building independent alternatives by ensuring continued reliance on American standards [7] Competitive Landscape - Nvidia's H20 chip is slower than alternatives like Huawei's Ascend, but Nvidia maintains an advantage through its CUDA software [2] - Huawei is reportedly redesigning its next AI chip to ease the transition away from CUDA, targeting Chinese companies still reliant on Nvidia's software [4] - A full ban on Nvidia could have created a captive market for Huawei, accelerating the development of its own chips and ecosystem [5] Nvidia's Position - Nvidia aims to sell enough chips in China to remain relevant and keep CUDA as the default platform for AI development [6] - Maintaining CUDA lock-in is crucial, as it serves as the operating system for AI development for companies like Alibaba and DeepSeek [3]