Nvidia Corp. (NASDAQ:NVDA) has informed clients in China that it currently has only a limited inventory of its H20 artificial intelligence chip, and that production will not be resuming in the near term, according to a report by The Information published Saturday.
The H20 is Nvidia’s most advanced AI chip that still complies with U.S. export regulations for China. Although Nvidia recently announced that it expects to receive updated licenses from the U.S. government to resume H20 shipments to Chinese firms, official approval from Washington has yet to materialize.
According to The Information, Nvidia has made it clear to Chinese customers that existing supplies are scarce and there are no immediate plans to restart manufacturing of the H20, despite growing demand from Chinese tech companies.
Until April, Nvidia was permitted to export the H20 chip under the export rules established during the Biden administration. However, those restrictions were tightened earlier this year by the Trump administration as trade tensions with China intensified.
In recent months, though, the two superpowers appeared to be seeking a thaw in their tech standoff. May and June saw signs of a détente, with China resuming rare earth exports to the U.S., and the U.S. relaxing some controls on chip design tools sold to China.
Despite Nvidia’s announcement about resuming H20 sales, the U.S. government has not provided confirmation or clarity on the licensing timeline.
The H20 chip is central to many of China’s leading AI initiatives and is used by prominent firms such as Alibaba (NYSE:BABA), Tencent (USOTC:TCEHY), Baidu (NASDAQ:BIDU), ByteDance, and DeepSeek.
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