What happened
China plans to permit select AI companies, including Alibaba, ByteDance, and DeepSeek, to purchase a restricted quantity of Nvidia H200 chips, per The Information. Chinese officials recently informed these firms of potential approval, despite previously withholding it even after US government and Nvidia clearance. The total approved volume could be under 200,000 units, less than half the companies' initial requests.
Why it matters
Chinese AI firms face a potential easing of their computing capacity crunch, impacting procurement teams seeking advanced hardware. This shift allows limited access to Nvidia H200 chips, a mechanism to address the country's tech companies' growing demand. The approved volume, potentially under 200,000 units, represents a controlled release, less than half the requested amount. This follows Nvidia CEO Jensen Huang's prior statement that US export controls had reduced the company's China market share to zero.
