Bloomberg Intelligence China Urges Companies Not to Use Nvidia’s H20 Chips
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Aug 12, 2025 
Kenneth Shea, a Senior Consumer Products Analyst at Bloomberg Intelligence, dives into the cannabis sector's turbulence, highlighting the struggles of companies like Curaleaf and Tilray amid weak valuations and potential asset sales. Erik Schatzker, Editorial Director of Bloomberg New Economy, discusses the implications of tariffs and deficits under Trump's economic strategy, referencing insights from Scott Bessent. The conversation unveils the shifting dynamics in both the cannabis and economic landscapes, offering a unique perspective on industry challenges and policy impacts.
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China Signals A Harder Line On H20 Chips
- China publicly urged firms like Alibaba and Tencent to avoid NVIDIA's H20, signaling a tougher stance than prior advisories.
- This raises real doubt about NVIDIA and AMD regaining meaningful China sales soon despite prior export agreements.
H20 Is A Downgraded, China-Specific Accelerator
- The H20 is a China-specific, performance-limited accelerator that was part of a U.S.-China export arrangement including a revenue share.
- Market reaction forces investors to reassess assumed China revenue for NVIDIA and AMD, possibly toward near-zero.
U.S. Export Deal Faces Strategic Pushback
- The U.S. deal let NVIDIA and AMD export lower-power chips to China in return for about 15% of revenues from Chinese AI accelerators.
- China's recent advisory may be a negotiating tactic or protection for domestic AI chipmakers, complicating the deal's commercial value.