What happened
Nvidia CEO Jensen Huang announced the company is restarting manufacturing of its H200 chips for China, weeks after securing US government export licences. Production of the Hopper-based H200, previously halted last year due to increasing regulatory hurdles in the US and China, has resumed to fulfil new orders. These China sales are distinct from Nvidia's projected $1 trillion revenue opportunity from its next-generation Blackwell and Rubin AI chips by 2027.
Why it matters
Procurement teams face a bifurcated market for Nvidia's AI hardware, with older-generation H200 chips now available for China under specific US export licences. This resumption, following a halt in H200 production last year, confirms a distinct supply chain for the Chinese market, separate from the flagship Blackwell and Rubin platforms. Investors should note these H200 sales are excluded from Nvidia's projected $1 trillion revenue from its next-generation AI chips by 2027.
