American chipmaking giant Nvidia (NVDA) says it plans to resume sales to China of an artificial intelligence chip that’s become part of a global race pitting the world’s biggest economies against each other.

David Sacks said this would "deprive Huawei of basically having this giant market share in China."

Washington has been concerned China could use Nvidia’s chips to get a jump on the U.S. in high-tech fields, particularly when it comes to artificial intelligence.

Nvidia CEO Jensen Huang described artificial intelligence models from Chinese firms Deepseek, Alibaba and Tencent as "world class" and said AI was "revolutionising" supply chains, at an exhibition in Beijing on Wednesday.

Commerce secretary Howard Lutnick said the US’s reversal of restrictions on sales of chips to China followed recent trade negotiations with Beijing over rare earths. President Donald Trump curbed exports of Nvidia’s H2O artificial intelligence chips to China in April as part of an escalation of his trade war with Beijing.

Nvidia stock spiked on Tuesday. The AI chip titan said it had received assurances from the administration that it can resume sales of key AI chips to China.

Nvidia Corp. plans to resume sales of its H20 AI chip to China after securing Washington’s assurances that such shipments would get approved, a dramatic reversal from the Trump

Nvidia CEO Jensen Huang said the Trump administration is letting it sell its advanced H20 computer chips to China — a reversal in policy.

The Trump White House says it's content to allow Nvidia to tap into the lucrative Chinese market. "We don't sell them our best stuff, not our second best stuff, not even our third best," Commerce Secretary Howard Lutnick said on CNBC Tuesday afternoon.

As the AI chipmaker rockets past a $4 trillion valuation, CEO Jensen Huang lays out a stunning vision of a future with robot assistants and revived American factories, but admits the transition won't be painless.

Mike Wilson, Morgan Stanley CIO and chief U.S. equity strategist, joins 'Squawk Box' to discuss on what recent Nvidia news means for tech companies at-large, what to expect from earnings and much more.