China Greenlights Nvidia H200 AI Chips Amid Tech Evolution

In a notable pivot towards advanced foreign technology, China has authorized the importation of its inaugural shipment of Nvidia’s H200 artificial intelligence chips. This decision underscores China’s commitment to fulfilling its burgeoning need for state-of-the-art AI hardware while enhancing its homegrown chip industry.

According to sources with insider knowledge, the approval, granted during Nvidia CEO Jensen Huang’s visit to China this week, encompasses several hundred thousand H200 chips. Due to the sensitive nature of the information, these sources wished to remain anonymous.

The majority of the initial shipments are expected to go to three leading Chinese internet firms, whereas other companies are positioned on a waiting list for subsequent batches. The identities of the firms receiving approval remain undisclosed.

Neither the Chinese authorities overseeing industry and commerce nor Nvidia have publicly responded to this development.

The H200 chip, regarded as Nvidia’s second most potent AI processor, has been at the center of the U.S.–China tech discourse. Recently, the U.S. government approved exports of the H200 to China, yet deliveries necessitated Beijing’s consent, which proved to be a stumbling block until now.

Earlier this month, U.S. regulations allowed Nvidia to sell H200 chips to Chinese clients to address increasing demand. However, Chinese customs had previously halted shipments due to a lack of authorization.

Despite uncertainties, Chinese tech enterprises have already placed orders for over two million H200 chips, a figure that significantly outstrips Nvidia’s current production capabilities.

It remains to be seen how many other companies will be granted access in future rounds, as well as the specific criteria used by Chinese regulators for approvals.

Nvidia’s CEO Huang arrived in Shanghai last Friday to engage in the company’s annual events across China and has continued his travels to cities including Beijing.

This approval illustrates Beijing's focus on catering to substantial internet companies that are making significant investments in AI data centers to remain competitive on a global scale. While firms like Huawei have developed chips that rival Nvidia’s earlier H20 model — which had been the most advanced chip previously allowed entry to China — their performance still lags behind that of the H200.

The H200 chip provides approximately six times the performance of its predecessor, the H20, making it crucial for sophisticated AI applications and extensive computing needs.