The US government, led by the Biden administration, is closely monitoring the sale of Nvidia’s accelerators to China, specifically focusing on restricting the shipment of the most advanced AI chips that could be used for military applications. Commerce Secretary Gina Raimondo has emphasized the importance of Nvidia complying with export restrictions and selling GPUs for commercial AI applications in China. However, the government has introduced stricter performance limits on GPUs and AI accelerators sold to China, impacting Nvidia’s business and pushing the company to navigate compliance challenges. Despite efforts to introduce new GPUs that adhere to these restrictions, such as the H20, there have been delays in their release, adding further complexity to the situation.