US Tightens AI Chip Export Licensing on June 1, 2026, Cutting Nvidia's China Revenue by $17B

On June 1, 2026, the U.S. Department of Commerce extended export-license requirements for advanced AI chips to overseas subsidiaries of China-headquartered companies. The change helped push Nvidia's share of China's AI accelerator market from 95% to zero, removing about $17 billion in annual revenue tied to China. Nvidia also estimates the market it exited is trending toward $50 billion.