US Clears H200 Chip Sales to 10 China Firms Amid Tech Tensions
The U.S. Commerce Department has approved the sale of Nvidia's H200 AI chips to about ten Chinese firms, including Alibaba, Tencent, and ByteDance. Despite these approvals, no deliveries have been reported, leaving the deal stalled. Nvidia CEO Jensen Huang is currently in Beijing, attempting to secure a commercial breakthrough amid heightened U.S.-China technology tensions. The approvals allow approved buyers to purchase up to 75,000 chips each, with distributors like Lenovo and Foxconn also cleared to participate. The situation underscores the friction between national economic priorities and approved trade mechanisms.
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The U.S. has granted approval for approximately ten Chinese firms to purchase Nvidia's H200 AI chips, yet no deliveries have been made, leaving the major technology deal in a state of limbo as Nvidia CEO Jensen Huang seeks a breakthrough in China.
US Approvals and Current Status
Sources familiar with the matter indicate that while the U.S. Commerce Department has cleared the sales, the physical transfer of the H200 chips has not yet occurred. This situation highlights the ongoing complexities in U.S.-China technology trade.
Approved Buyers: Around 10 Chinese companies have received approval to purchase the H200 chip.
Key Firms: These approved buyers include major entities such as Alibaba, Tencent, ByteDance, and JD.com.
Authorized Distributors: Several distributors, including Lenovo and Foxconn, have also been approved as sales partners.
Purchase Limits: Under current U.S. licensing terms, each approved customer can purchase up to 75,000 chips.
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Nvidia's Efforts in China
Jensen Huang, CEO of Nvidia, is currently in Beijing, reportedly seeking a commercial breakthrough. His presence has drawn attention, as he was reportedly invited to the trip by President Donald Trump, who was en route to a summit with Chinese President Xi Jinping.
Huang stated to state broadcaster CCTV on Thursday that he hoped the talks between Trump and Xi would strengthen bilateral ties.
Significance of the Market
The stakes surrounding these chips are considerable, underscoring the impact of the U.S.-China tech rivalry. Before stricter U.S. export curbs, Nvidia held a dominant position in China's advanced chip market. Historically, China represented a significant portion of Nvidia's revenue, with Huang previously estimating the Chinese AI market alone could reach $50 billion this year.
Official Responses
A spokeswoman for the U.S. Department of Commerce declined to comment on the export controls governing the H200 semiconductors.
China's Ministry of Industry and Information Technology and the National Development and Reform Commission did not respond to requests for comment.
Lenovo confirmed in a statement that it is among several companies approved to sell H200 in China under Nvidia's export license.
