Nvidia's H200 AI Chip Gains Chinese Approval Amid Regulatory Challenges

Chinese companies have been approved to purchase Nvidia's H200 AI chips, as the U.S. and China grant necessary licenses. This comes after Nvidia faced production halts due to regulatory issues. Though details of China's final approval remain unclear, purchase orders are now being processed, marking a positive shift in the tech sector.

Chinese authorities have sanctioned specific Chinese companies to acquire Nvidia's H200 AI chips, according to an insider. Nvidia's CEO, Jensen Huang, confirmed at a press event in San Jose that the firm secured licenses for many Chinese customers and received numerous purchase orders.

Previously, Nvidia awaited permissions from both U.S. and Chinese regulatory bodies. The chipmaker now has U.S. consent, and reportedly, Beijing has also permitted many local customers to proceed. However, the Chinese embassy in Washington claimed no knowledge of the particulars, deferring inquiries to specialized agencies.

Huang mentioned that Nvidia is resuming H200 production, paused due to U.S. and Chinese regulatory impediments, highlighted in a recent FT article. Clearance from both nations has been attained, allowing Nvidia to move forward, as per Huang's conversation with CNBC.

(With inputs from agencies.)