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China's AI Chip Deal Hits Snag Amid US Export Rules
14 May
Summary
- Ten Chinese firms were approved to buy NVIDIA H200 AI processors.
- Delivery of NVIDIA's H200 processors to China remains unfulfilled.
- China's government advised firms against purchasing chips due to unclear US changes.
In December 2025, the US government granted approval for NVIDIA to sell its H200 processors to select Chinese companies, following earlier blocks due to national security concerns. This decision aimed to permit the import of hundreds of thousands of these advanced AI chips.
Despite initial approval for entities like Alibaba, Tencent, and ByteDance to acquire up to 75,000 H200 chips, the firms have reportedly paused their purchases. This hesitation follows guidance from the Chinese government, which is encouraging the use of domestically developed chips and reportedly fears hidden vulnerabilities in the H200s. The exact nature of the recent US regulatory changes remains unclear.
NVIDIA's CEO previously expressed concerns about losing market share in China due to export restrictions. The recent visit of NVIDIA's CEO to Beijing, alongside other high-profile figures, may signal potential shifts in future chip trade relations between the two nations.
