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

image via TechCrunch

August 1, 2025, 8:30 PM

• •U.S. Secretary of Commerce Howard Lutnick allowed Nvidia to sell AI chips in China.
• •Nvidia has not yet received a license to sell its H20 AI chips.
• •The U.S. Department of Commerce is facing a backlog of licensing applications.
• •National security experts are urging restrictions on Nvidia's H20 AI chip sales to China.

Despite approval for AI chip sales to China, Nvidia awaits a license to sell its H20 chips. The U.S. Department of Commerce is experiencing delays in licensing due to internal issues, including staff shortages and communication breakdowns. This delay occurs as national security experts advocate for restrictions on Nvidia's H20 AI chip sales to China. The situation underscores the complexities of international trade and national security concerns in the tech industry.

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