The story so far: On December 8, U.S. President Donald Trump announced that Chinese firms will be able to import Nvidia’s H200 graphics processing units, provided the company pays the U.S. government a 25% revenue surcharge.

What are the chips used for?

Nvidia designs and develops graphics processing units, or GPUs. While GPUs are what drive digital displays and help with advanced workloads like video games, some are designed to help with AI development, such as by training large language models (LLMs), and performing other resource-intensive tasks. H200 is one generation behind the Blackwell architecture, which is the cutting edge of Nvidia’s product lineup. A key differentiator that Nvidia has is its proprietary CUDA software architecture, which it uses to improve the performance of

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