Nvidia's H200 Chips Ignite China's AI Race

The U.S. decision to export Nvidia's H200 AI chips to China triggers significant interest among Chinese tech firms, institutions, and military entities. Despite a lack of formal approval from Beijing, these chips are actively sought through legal and grey market channels, reflecting high demand across various sectors.

The decision by the United States to permit exports of Nvidia's H200 chips to China is anticipated to fuel heightened demand within the country's tech sector, research institutions, and defense industry. This move, aimed at balancing competitive dynamics, finds China eagerly exploring both legal and grey market avenues to secure these advanced technologies.

Despite Beijing's silence on the matter, a Reuters investigation reveals a robust interest among Chinese universities and military-linked groups for the H200 chip. This interest underscores the broader ambition of utilizing sophisticated AI capabilities, critical for talent acquisition and strategic military advancements.

Across China, data centers and AI clusters are positioning themselves to integrate significant quantities of the H200 chips, highlighting the accelerating pace of AI infrastructure development. With past export bans now softened, the appetite for these AI enablers represents both an economic opportunity and a geopolitical challenge.