A backlog at the Commerce Department is reportedly stalling Nvidia’s H20 chip licenses

Earlier in July, the American secretary of Handard Lutnick Lutnick gave chipmakers such as Nvidia the Green Light to sell certain AI chips in China again, but his department would keep things up.

According to Reuters reportingNvidia still has to receive a license to sell its H20 AI chips.

The US Department of Commerce is currently at a disadvantage of licensing current applications as a result of unrest within the department, largely due to a loss of staff and a breakdown in communication with industry, per Reuters.

This excess comes when national security experts encourage the Trump administration to limit Nvidia to sell its H20 AI chips to China on national grounds for safety.