The letter warned it may advance China's AI capability and help its companies capture global AI model market share.

The decision this week to allow Nvidia to resume sales reversed an export restriction imposed in April that is designed to keep the most advanced AI chips out of Chinese hands over national security concerns, an issue that has found rare bipartisan support. It drew swift questions and criticism from US legislators.

"The Commerce Department made the right call in banning the H20," Republican Representative, John Moolenaar wrote on Friday. "We can't let the (Chinese Communist Party) use American chips to train AI models that will power its military, censor its people, and undercut American innovation."

Nvidia said earlier this week it had been assured by the US government that it would be permitted to resume sales to China of its H20 graphics processing unit, an important source of revenue for the world's most valuable company and a sign the US was relaxing restrictions on the export of AI technology to China.

Shares of Nvidia turned negative on Friday after the news regarding the artificial intelligence chip.

--Reuters--