Nvidia placed orders for 300,000 H20 chipsets with contract manufacturer TSMC last week, two sources said, with one of them adding that strong Chinese demand had led the U.S. firm to change its mind about just relying on its existing stockpile.

Now that Nvidia finally has US approval to sell its H20 chips to China, the country is voicing concerns about the AI hardware. It’s the latest move in a long-running struggle between the US and China over China’s access to modern technology. The announcement is surprising, considering that China’s appetite for H20 AI chips is enormous.

Nvidia and AMD agreed to share 15% of their revenues from chip sales to China with the U.S. government, President Donald Trump confirmed at a press conference on Monday