The H20 is the most advanced processor for artificial intelligence (AI), which Nvidia can legally supply China in the context of solid US export restrictions introduced in October 2023. These restrictions are designed to slow down the development of Chinese technologies that are alleged to strengthen the country’s military potential.
The demand for H20 has grown sharply due to the popularity of cheap AI models from Deepseek, which does not require strong chips. Nvidia refused to comment and the companies mentioned have not yet responded to the demands. Meanwhile, one of the largest Chinese server manufacturers, H3C warned a possible H20 deficiency in March that could slow down the ambitions of local companies in AI.
Since 2022, the United States has feared the use of the most modern Nvidia chips to China for military purposes by prohibiting the export of chips.
Source: Ferra

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