US Grants Nvidia License to Export AI Chips to China despite Ongoing Restrictions

The decision comes after Washington reversed an April ban on sales of the H20 to China — a chip Nvidia had specifically modified to comply with Biden-era export controls targeting advanced AI hardware.

These US restrictions, framed under the pretext of “national security,” have been widely viewed in Beijing and by independent analysts as part of Washington’s broader campaign to curb China’s technological advancement.

Nvidia had warned that the sales ban would cut $8 billion from its July-quarter revenue. The company confirmed in July it had applied for licenses to resume shipments and had been told approvals would be issued soon.

It remains unclear how many licenses have been granted, which Chinese companies can receive the chips, or the scale of the shipments allowed.

In April, Nvidia estimated a $5.5 billion charge linked to the restrictions. By May, the figure was revised down by $1 billion after the firm repurposed some components.

Nvidia CEO Jensen Huang reportedly met US President Donald Trump on Wednesday, according to sources familiar with the matter. The company declined to comment, and the White House offered no immediate response.

While exports of other high-end AI chips to China remain blocked, the H20 has generated significant revenue — $4.6 billion in the first quarter alone — with China accounting for 12.5% of Nvidia’s total revenue in that period.

Successive US administrations, both Democratic and Republican, have pursued aggressive measures to deny China access to cutting-edge semiconductors, seeking to undermine the country’s AI and defense sectors. Despite this, China remains one of the largest semiconductor markets, with domestic firms such as Huawei moving quickly to offer competitive alternatives.