Gipson made 14 appearances for Houston in 2019, finishing with 51 tackles and three interceptions.
He signed a three-year, $22.5 million deal with the Texans last offseason. Releasing him now would add $4.3 million in dead money to the team's salary cap while saving almost $3.2 million, per Spotrac.
Doubts about Gipson's position within Houston's secondary arose when head coach Bill O'Brien acknowledged the team was targeting safety help in the draft.
"Safety is another position I think we can add to," he told reporters. "We've added Eric Murray, we've added Jaylen Watkins, but we can continue to add depth there. I'd say there's not one specific need, but there's several."
The Texans didn't select a safety but still added to the secondary with Penn State cornerback John Reid in the fourth round.
Landry Locker @LandryLocker
State of safety position for #Texans following Gipson release: The Known: 1. Reid can ball, lock to start. 2. Watkins, Moore & Thomas are good special teams players. What They Think: Eric Murray will be a quality, versatile important piece. This it or more to come in the room?
Gipson, who started all 14 of his games last season, was burdened with the weight of massive expectations when he arrived in Houston since he was replacing Tyrann Mathieu.
The 29-year-old earned a trip to the Pro Bowl in 2014. While it's doubtful he can rediscover that form, a change of scenery may lead to a bounce-back season in 2020.