Commerce Department Backlog Delays Nvidia’s H20 Chip License Approval: Potential Hurdle for Tech Giant

In July, U.S. Secretary of Commerce Howard Lutnick granted approval for chipmakers such as Nvidia to resume exports of certain artificial intelligence (AI) chips to China. However, it appears that the process is encountering delays due to complications within the Department of Commerce.

According to a report from Reuters, Nvidia has yet to secure a license to sell its H20 AI chips in China. The delay is attributed to the Department of Commerce grappling with an accumulation of licensing applications, primarily as a result of staffing shortages and deteriorated communication channels with industry stakeholders.

This impediment comes at a time when national security experts are advocating for restrictions on Nvidia’s sale of H20 AI chips to China on grounds of national security.