Core Insights - China has instructed companies to avoid using Nvidia's H20 chips following the chipmaker's approval to resume shipments of this less advanced AI product [1] - The U.S. government has confirmed that Nvidia and AMD will allocate 15% of their revenues from China to the U.S. government, particularly for government and national security applications [2] - Both Nvidia and AMD had previously announced plans to resume shipments to China after the U.S. administration began requiring export licenses earlier this year [3] Group 1 - China has advised companies against using Nvidia's H20 chips after the company received approval to resume shipments [1] - The U.S. government confirmed that Nvidia and AMD will contribute 15% of their China revenues to the U.S. government [2] - Both Nvidia's H20 chip and AMD's MI380 were designed to circumvent previous AI chip restrictions imposed on China due to national security concerns [3] Group 2 - The recent developments have caused shares of both Nvidia and AMD to fluctuate [3] - The directive from Chinese authorities comes amid ongoing tensions regarding national security and technology exports [2] - The situation highlights the complex relationship between U.S. technology firms and the Chinese market, particularly in the AI sector [1][2]