The Trump administration’s decision allowing Nvidia Corp. to resume shipments of its H20 artificial intelligence chips to China risks bolstering Beijing’s military capabilities and expanding its capacity to compete with the US in AI,

Nvidia will ramp up supply of Chinese-compliant H20 chips in the coming months and look to bring more advanced semiconductors to the world's second-largest technology market, Chief Executive Jensen Huang said at an event in Beijing.

The Silicon Valley chip giant said the Trump administration, which had shut down its sales to China three months ago, had assured it that licenses for the sales would now be granted.