Sales of Nvidia's H200 artificial intelligence chips to China remain halted, nearly two months after US President Donald Trump approved their export, pending a review related to US national security.
According to the Financial Times, Chinese customers are not placing orders for these advanced chips until it becomes clear whether they will be able to obtain licenses and what conditions will be imposed to obtain them.
In January, the U.S. Department of Commerce eased restrictions on the export of H200 chips to China, but stipulated that license applications be reviewed by the U.S. Departments of State, Defense and Energy.
According to the Financial Times, the Commerce Department has completed its analysis, but the State Department is pushing for stricter restrictions, with the aim of reducing the likelihood of China using chips in ways that could undermine U.S. national security.
In this context, Jensen Huang, CEO of Nvidia, said last week that he hopes China will allow the sale of the H200 artificial intelligence chip in the world's second-largest economy, adding that the licensing process is nearing completion.
Reuters reported last month that China had agreed to import its first batch of Nvidia's H200 chips, a shift in Beijing's stance as it seeks to balance its artificial intelligence needs with stimulating domestic development.