China's Quest for Nvidia's H200 AI Chip Amid U.S. Export Policy Shift

ByteDance and Alibaba are inquiring about purchasing Nvidia's H200 AI chip after President Trump's approval for export to China. Supply concerns linger as Beijing reviews the situation. The H200, much more powerful than prior models, is in demand by Chinese tech, academic, and military entities.

Chinese tech giants ByteDance and Alibaba have shown significant interest in acquiring Nvidia's H200 AI chip following the approval of its export to China by President Donald Trump. Sources reveal that these companies are eager to secure large quantities, pending Beijing's approval, to boost their artificial intelligence capabilities.

Previously, the H20 version was the most advanced semiconductor permitted for export to China. However, the H200 offers nearly six times the power, making it highly coveted. The Chinese government has yet to clarify its stance on the H200's import, especially after barring local tech firms from purchasing Nvidia chips, impacting Nvidia's market share in China.

Despite the high demand, Nvidia's production of the H200 remains limited as the firm shifts focus towards its next-generation Blackwell and Rubin lines. Meanwhile, Chinese regulators have reportedly called upon major companies to assess their requirements for the H200, signaling potential government scrutiny on tech acquisitions that could sideline domestic AI chip producers.

(With inputs from agencies.)