H200 Chips to China

What happened

The US government will permit Nvidia to export H200 AI chips to China, updating existing export controls on advanced technologies. This allows Chinese AI labs to construct AI supercomputers with performance levels approaching top US systems, albeit potentially at higher costs, due to the H200's increased high-bandwidth memory. The more advanced Blackwell chips remain restricted, representing a compromise balancing national security and economic interests following a US-China trade truce.

Why it matters

This policy shift introduces a constraint by increasing the availability of advanced AI compute capabilities within China, potentially accelerating military applications. It raises due diligence requirements for IT security and procurement teams to monitor the end-use and proliferation of these technologies. The reduced control over H200 exports creates an oversight burden for national security and compliance teams regarding the potential for dual-use technology.