Trump Eases AI Chip Export to China: ByteDance and Alibaba Eager to Secure Nvidia H200

ByteDance and Alibaba are seeking to buy Nvidia's H200 AI chip, after President Trump allowed its export to China. Despite keen interest, concerns remain over supply and regulatory approval from Beijing. China's recent restrictions on AI chip purchases pose challenges as Chinese companies await clarification.

ByteDance and Alibaba are reportedly in talks with Nvidia to purchase the powerful H200 AI chip following U.S. President Donald Trump's recent export approval to China, Reuters sources have confirmed. The companies are eager to place significant orders pending Beijing's go-ahead, amid ongoing reservations about supply and regulatory clarity.

Before Trump's announcement, Nvidia's H200 chip, which boasts nearly six times the power of the previously legal H20, faced export restrictions, with only less advanced AI chips eligible for shipment to China. However, Chinese regulatory doubts persist, following recent barring of government-funded institutions from purchasing Nvidia products.

The H200 chip's unmatched training capabilities make it a sought-after commodity for Chinese tech giants like Alibaba and ByteDance. Despite Trump's policy shift, Chinese authorities may still scrutinize AI chip import requests as Beijing weighs the implications on its domestic industry. Meanwhile, anticipation grows over the potential increase in low-key chip acquisitions.