A backlog at the Commerce Dept. is reportedly stalling Nvidia’s H20 chip licenses

In a significant turn of events, the U.S. Department of Commerce is reportedly causing delays in Nvidia's ability to sell its H20 AI chips. Following a clearance earlier in July from U.S. Secretary of Commerce Howard Lutnick, which allowed chipmakers like Nvidia to resume sales of certain AI chips in China, the company has yet to secure the necessary license for its H20 model. Sources from Reuters indicate that the department is grappling with a backlog of licensing applications, primarily due to internal turmoil stemming from staff shortages and communication breakdowns with the industry. This delay poses a challenge for Nvidia as it seeks to navigate the complexities of international sales. Compounding the situation, national security experts are advocating for the Trump administration to impose restrictions on Nvidia's sales of the H20 AI chips to China, citing potential national security risks. The intersection of technology and security continues to create a contentious landscape for chipmakers operating in the global market.