Commerce Dept. Backlog Halts Nvidia H20 Chip Licenses for China
Summary
- Nvidia's H20 AI chip sales to China are reportedly stalled.
- A backlog at the U.S. Commerce Department is cited as the cause.
- Internal turmoil, staff losses, and communication breakdowns are contributing factors.
- National security experts are urging restrictions on these sales.
Overall Sentiment: 🔴 Negative
AI Explanation
Nvidia's plans to sell its H20 AI chips to China are reportedly facing delays due to a significant backlog at the U.S. Department of Commerce. Despite an earlier indication from Secretary Howard Lutnick that some AI chip sales to China could resume, the department is said to be slow in processing license applications. This slowdown is attributed to internal turmoil, including staff losses and communication issues with the industry. Meanwhile, national security experts are advocating for restrictions on these sales to China, citing security concerns.
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