The U.S. government has granted Nvidia a conditional license to export certain artificial intelligence processors to China, marking a shift in semiconductor policy after months of strict restrictions. The approval permits shipments of non-advanced AI chips, including models based on the Hopper and Ada Lovelace architectures.
- U.S. Department of Commerce issued temporary license for Nvidia to export specific AI chips to China
- Approved chips include A10, A100 (non-GA100), and L40S with performance limits under 200 teraflops
- Revenue potential estimated at $1.2 billion annually for Nvidia in China
- Advanced chips like H100 and B100 remain restricted under embargo
- License requires quarterly compliance reporting and customer vetting
- Beneficiaries include Chinese cloud providers such as Alibaba Cloud and Tencent Cloud
The U.S. Department of Commerce has issued a temporary license allowing Nvidia to resume the export of specific AI chips to Chinese customers, following a formal application submitted in late November 2025. The authorization covers only non-classified AI processors that do not exceed a defined performance threshold, ensuring they cannot be used for military or large-scale surveillance applications. This marks the first such approval since the Biden administration tightened export controls in 2024 amid concerns over China's growing technological capabilities. Under the terms of the license, Nvidia is restricted from shipping chips with more than 400 billion transistors or those exceeding 200 teraflops of AI performance. The approved models include the A10, A100 (non-GA100 variants), and L40S, all of which are intended for cloud computing, enterprise workloads, and research institutions. The company is required to submit quarterly compliance reports and maintain strict customer vetting protocols, with any suspected misuse triggering immediate review. Market analysts estimate the license could unlock up to $1.2 billion in annual revenue for Nvidia’s China operations, which had seen sales drop by 68% in the year prior to the approval. The move is expected to benefit major Chinese cloud providers such as Alibaba Cloud, Tencent Cloud, and Baidu AI Cloud, which have been operating with limited hardware options. However, the U.S. maintains that advanced chips—including the H100 and B100—remain under embargo and cannot be exported under any circumstances. The decision reflects a strategic balancing act by U.S. regulators, aiming to reduce market distortions while preserving national security safeguards. It also signals potential easing in tech trade tensions between Washington and Beijing, though the broader semiconductor export framework remains intact.