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,

With help from a longtime Silicon Valley investor turned White House insider, Mr. Huang got the administration to reverse course on restrictions.

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.