The commerce department has started issuing licenses to Nvidia to export its H20 chips to China, a U.S. official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market.

The export restrictions on the H20 chip are expected to have a major impact on NVIDIA's sales. The company has warned that these curbs will cut its revenue by $8 billion in the July quarter. In April, NVIDIA had predicted a $5.5 billion charge due to these restrictions but later revised it down by $1 billion as some materials could be reused.

The U.S. Department of Justice (DOJ) said on Tuesday that two Chinese nationals have been arrested for their alleged involvement in illegally shipping "tens of millions of dollars" worth of high-performance AI chips to China.

The United States’ Commerce Department has started issuing licences to Nvidia to export its H20 chips to China, a US official told Reuters

It is unclear how many licences may have been issued, which firms Nvidia was permitted to ship to, and the value of the shipments allowed.

The U.S. Department of Commerce has started issuing licenses to Nvidia to export its H20 chips to China, a U.S. official told Reuters on Friday, removing a significant hurdle to the AI bellwether's access to a key market.

The U.S. Department of Commerce has begun to issue licenses to Nvidia (NVDA) to export H20 chips to China following CEO Jensen Huang’s meeting