A US official said that the Bureau of Industry and Security —the division of the Commerce Department responsible for export controls—had started approving licenses for the H20 chip. Nvidia developed this chip specifically for the Chinese market after the Biden administration imposed restrictions on exporting more advanced AI chips.

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 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.

In a dramatic twist in the global AI competition, Malaysia has entered the spotlight by imposing new trade permit regulations on high-end AI chips developed in the United States. Why would a Southeast Asian nation suddenly restrict the flow of the world's most powerful processors?

As the US and China look for any sort of leverage in a prolonged trade fight, Beijing sees an opportunity to win over the world by taking a stand against the Trump administration's plans to track high-end chips.