Nvidia is modifying the design of its artificial intelligence (AI) chips to comply with U.S. export regulations, allowing them to be sold to Chinese businesses, according to a report by The Information. The chip giant has communicated these plans to major Chinese customers, including Alibaba Group, TikTok-parent ByteDance, and Tencent Holdings.

Nvidia CEO Jensen Huang informed customers of these adjustments during his visit to Beijing in mid-April. This trip occurred shortly after the U.S. government restricted exports of its H20 AI chips to China. Nvidia had previously stated that these export restrictions on its primary chip, legally permitted for sale in China, would result in charges of $5.5 billion for the company.

The Information reported that Nvidia has indicated to customers that samples of the redesigned chip will be available as early as June. The company is also reportedly developing a China-specific version of its latest-generation AI chip, Blackwell.

Nvidia declined to comment on the report, and Reuters' requests for comment from ByteDance, Alibaba, Tencent, and the U.S. Commerce Department went unanswered.

The sale of Nvidia's advanced AI chips to China, a critical market for the company, has been a point of contention. U.S. officials have been moving to restrict the flow of the most powerful chips to China to maintain a lead in the AI sector. In response to these restrictions, Nvidia began designing chips specifically tailored for the Chinese market, aiming to come as close as possible to the U.S. limits.