Nvidia is in ongoing talks with U.S. officials about the precise license terms that would permit the company to ship its H200 artificial intelligence processors to buyers in China, according to reports published late Wednesday. While the Trump administration indicated about two weeks ago it would allow a license enabling China-based ByteDance to purchase H200 chips, Nvidia has not agreed to every condition the U.S. government has proposed.
A key point of contention centers on Know-Your-Customer (KYC) requirements that U.S. authorities have proposed. Those measures are intended to reduce the risk that Chinese military entities could obtain advanced AI chips. Nvidia has raised concerns about certain aspects of those conditions and has not yet accepted them as written.
Speaking in a statement cited by the reports, a Nvidia spokesperson framed the company as an intermediary between U.S. regulators and potential buyers that must comply with U.S. export restrictions. The spokesperson said: "We aren't able to accept or reject license conditions on our own. Although KYC is important, KYC is not the issue. For American industry to make any sales, the conditions need to be commercially practical, else the market will continue to move to foreign alternatives."
The matter is expected to move forward eventually. The U.S. is anticipated to permit Nvidia to sell H200s and similar processors made by AMD to Chinese customers, on the understanding that President Donald Trump has personally approved these sales and that outstanding national security concerns are resolved.
For companies that design and sell high-end AI accelerators, finalizing workable licensing terms is a gating issue - the conditions set by regulators will determine whether American suppliers can participate in a lucrative segment of the Chinese market or whether demand shifts toward non-U.S. rivals. The discussions around KYC and other controls will therefore shape commercial access and competitive dynamics for advanced AI hardware.
At this stage, Nvidia remains in negotiation with U.S. authorities and has not accepted the government's proposed licensing conditions for H200 exports to China.