United States Grants Export Authorization for H20 Chips to Nvidia, According to an Official Announcement
In a recent development, American tech giant Nvidia is grappling with the impact of US AI export controls on its H20 chips. The controls, announced in April 2025, require Nvidia to obtain a license to export the H20 chip to China, significantly restricting shipments worth approximately $2.5 billion[1].
Nvidia has not shipped the H20 chip to China for several months, adhering to the US government’s export rules[1]. The H20 chip is not classified as a military or government infrastructure product, but China has expressed security concerns and discouraged local companies from using Nvidia's H20 chips, particularly for national security-related purposes[1].
The Financial Times reported the issuance of H20 export licenses to Nvidia, but the number of licenses issued and the specific companies Nvidia was permitted to ship H20 chips to following the export controls remain unclear[1]. Jensen Huang, a representative from Nvidia, declined to comment[1].
The impact of the export controls on the sales of H20 chips by Nvidia is significant, amounting to around US$8 billion[1]. Nvidia has warned that these curbs would reduce sales from their July quarter by approximately US$8 billion[1]. The potential impact of the export controls on Nvidia's overall sales and operations beyond the reduction in sales from the July quarter is not provided in the article.
A White House spokesman did not immediately respond to a request for comment[1]. The exact nature or reasons for the imposition of export controls on H20 chips are not provided in the article[1]. The value of the shipments of H20 chips allowed following the export controls is unknown[1].
Despite the restrictions, Nvidia has publicly stated that it hopes the rules will still allow US companies to compete in China and globally[1]. The article does not provide information on how the export controls on H20 chips were implemented[1].
[1] Source: The Financial Times, [Article Link]
In light of the US AI export controls, Nvidia is struggling to navigate the implications for its business, specifically in the area of investing in technology, such as the H20 chip, which has been a significant source of revenue. The restrictions have led to a pause in shipments to China, causing a potential loss of approximately $8 billion in sales for Nvidia, highlighting the impact on their business and overall operations. However, Nvidia remains optimistic that the rules will permit US companies to continue competing in China and globally, hinting at the potential deployment of artificial intelligence and investing in related business sectors even under these controls.
