The US authorizes Nvidia to export chips to China after CEO meeting with Trump.

247 - The U.S. Department of Commerce has begun issuing licenses for Nvidia to export its H20O chips to China, ending weeks of stalled processes. The decision was made shortly after the company's CEO, Jensen Huang, met with President Donald Trump at the White House, according to reports. information from Financial Times.

The H20 was developed specifically for the Chinese market after the Biden administration imposed restrictions on the export of more advanced artificial intelligence chips. In April, the Trump administration initially tightened its stance and banned the sale of the model to China, but reversed the decision after direct lobbying by Huang in the Oval Office. Even so, the company complained that, three weeks after the announcement, the licenses had still not been granted.

According to sources cited by the British newspaper, Huang returned to the White House last Wednesday and, two days later, the Department of Commerce began issuing the authorizations. Neither Nvidia nor the government agency have officially commented on the change.

Debate between national security and the technology market.

The H20O chip has become the center of a dispute between security authorities and industry executives. For some government sectors, allowing China access to the chip would represent a risk of strengthening its military apparatus. Nvidia, on the other hand, argues that restricting exports only accelerates Chinese technological development, opening space for local competitors like Huawei.

O Financial Times It was revealed that 20 security experts, including Matt Pottinger, former deputy national security advisor in the first Trump administration, and David Feith, who served on the National Security Council, sent a letter to Commerce Secretary Howard Lutnick asking that the sale be blocked. The group considered the authorization a "strategic mistake that jeopardizes the U.S. economic and military advantage in artificial intelligence."

Nvidia, in turn, countered the criticism, calling it "misguided" and denying that the H20O could be used to expand Chinese military capabilities.

Financial impacts and market loss

The restrictions initially imposed had a billion-dollar impact on Nvidia. The company recorded a loss of US$4,5 billion in the quarter ended in July, in addition to US$2,5 billion in lost sales. The measure surprised the company, which had informed Chinese customers that supplies would continue as normal.

The ban was seen as a blow that could shut down Nvidia's legal AI chip sales in China, a market Huang estimates will reach $50 billion in the next two to three years. The company had even predicted an $8 billion loss in revenue in the July quarter alone.

Even in the face of restrictions, Nvidia sought to develop an AI chip adapted to the new export rules. Huang warned that restrictive policies could strengthen Chinese rivals, noting that the company's market share in that sector had fallen from 95% to 50% in four years. In May, he described US export policies as a "failure."