Plans for Nvidia to resume large-scale sales of its H200 AI chips to China remain stalled. Despite a December agreement allowing exports, final approvals from the U.S. government are pending. This delay has caused Chinese customers to postpone orders. Washington's national security review of license applications is the primary cause for the ongoing hold.

The U.S. Commerce Department has completed its analysis, but the State Department seeks stricter restrictions. This highlights ongoing concerns regarding the use of advanced AI technology. Nvidia had ramped up production in anticipation of strong demand. The hold-up impacts the company's efforts to re-enter a $50 billion-a-year market, as described by CEO Jensen Huang.

The December agreement also covers Advanced Micro Devices (AMD), allowing exports under stringent conditions. These conditions include reviews of end-use and shipment limitations. The situation underscores the complex geopolitical environment surrounding AI chip exports and the ongoing tensions between the U.S. and China. Further developments depend on the review outcomes.