Nvidia's H200 Chips Set for China Amid Policy Shifts

Nvidia has informed Chinese clients of its intention to ship the H200 AI chips to China by mid-February. Shipments, contingent on U.S.-China relations and government approvals, could face hurdles as Beijing has yet to consent to purchases. The move follows a U.S. policy shift permitting limited sales.

Nvidia is preparing to ship its H200 AI chips to China by mid-February, aiming to navigate the complex landscape of U.S.-China policy shifts. Sources familiar with the matter revealed that the delivery relies on existing stock, with plans for increased production in the future.

However, the shipments remain uncertain as China's approval is pending. This move coincides with a change in U.S. administration policy, allowing limited sales of the H200, which had faced restrictions due to national security concerns under the previous administration.

The approval is seen as critical for tech giants in China, such as Alibaba Group and ByteDance, as the H200 chips offer significant computing power compared to domestic alternatives. Nvidia's strategy to boost production of its newer Blackwell chips underscores the scarcity of the H200 supply.

(With inputs from agencies.)