The U.S. Department of Commerce has begun issuing licenses to semiconductor giant Nvidia, allowing the company to export its H20 chips to China, removing a major obstacle to the AI leader’s access to one of its key markets, a U.S. official told Reuters.
The move follows last month’s reversal of a ban imposed in April on selling the H20 chip to China, which came amid an escalating tariff exchange between Washington and Beijing initiated by President Donald Trump, reaching the level of a trade war.
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Nvidia designed the H20 processor specifically for the Chinese market to comply with AI chip export controls implemented under former President Joe Biden. However, the company later warned that Trump’s expanded restrictions would slash its July-quarter revenue by $8 billion.
Two sources familiar with the matter told Reuters that Nvidia CEO Jensen Huang met with President Trump on Wednesday.
In July, Nvidia announced plans to apply for U.S. government approval to resume H20 sales to China, and later received assurances that licenses would be granted soon.
The development comes as global tech giants race to build more advanced AI models capable of reasoning and performing tasks autonomously, pushing toward so-called Artificial General Intelligence (AGI), which would surpass human cognitive abilities.
Industry leaders are pouring resources into making AI-powered tools, such as OpenAI’s ChatGPT, Google’s Gemini, Meta AI, and Anthropic’s Claude, indispensable for consumers and developers alike, a push fueled by high-performance chips like those Nvidia produces.
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