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The United States has granted Nvidia licenses to resume exports of its H20 artificial intelligence chips to China, marking a significant development in the tech giant’s effort to re-enter one of its most important markets.
A U.S. Commerce Department official confirmed to Reuters on Friday that the approvals have begun rolling out, just weeks after Washington reversed an April ban on the sale of the H20 chip to China. The H20 was specifically engineered to comply with Biden-era export controls aimed at curbing Beijing’s access to advanced AI technologies.
The licensing removes a major obstacle for Nvidia, which had warned that U.S. export restrictions could wipe out billions in potential sales. The company has said the H20 generated $4.6 billion in revenue in the first quarter alone, with China accounting for 12.5% of overall income during that period.
While details on the number of licenses issued, eligible Chinese buyers, and shipment values remain undisclosed, the decision signals a partial thaw in a tech standoff that has strained U.S.-China trade. Nvidia had applied for permission to ship the H20 in July and was told it would receive the green light “soon.”
Nvidia’s CEO, Jensen Huang, reportedly met with former U.S. President Donald Trump earlier this week, although the company declined to comment on the meeting. The White House has not responded to requests for comment.
The H20 is the only advanced Nvidia AI chip currently cleared for China; other high-end processors remain restricted. Washington has maintained tight controls on semiconductor exports to China to limit its AI and defense capabilities a strategy pursued by both the Biden and Trump administrations.
Despite the political headwinds, China remains one of the largest semiconductor markets globally. Huang has previously warned that U.S. chipmakers risk losing ground to domestic competitors such as Huawei Technologies if they are unable to serve Chinese customers.
Nvidia has also faced scrutiny in China over security concerns, with Beijing questioning whether the H20 chip could contain “backdoors” for remote access. The company has firmly denied any such vulnerabilities.
The Financial Times first reported the latest licensing developments.
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