The Trump administration is willing to allow China’s ByteDance (BDNCE) to buy Nvidia’s (NVDA) H200 chips, but the AI chipmaker has not agreed to proposed conditions for their use, Reuters reported, citing a person familiar with the matter.
The U.S. said it would approve the license about two weeks ago, the person said, but Nvidia has not accepted the U.S. government’s Know-Your-Customer (KYC) requirement as now drafted—to ensure China’s military does not access the chips—among other conditions.
More broadly, Nvidiais negotiating with the U.S. over the terms of licenses to ship its H200 AI chips to companies in China, the report added.
Nvidia said it was an intermediary between the U.S. government and potential customers that would have to comply with the U.S. restrictions.
“We aren’t able to accept or reject license conditions on our own,” a company spokesperson told Reuters in a statement. “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.”
