Post by : Meena
Hassan
China has officially sanctioned the import of its inaugural batch of Nvidia’s H200 artificial intelligence chips, indicating a notable change in its approach towards advanced foreign technologies. This decision underscores China's intention to fulfill its increasing appetite for cutting-edge AI hardware while bolstering its domestic chip manufacturing sector.
The approval encompasses several hundred thousand H200 chips, granted during Nvidia CEO Jensen Huang’s visit to China this week, as revealed by insiders who spoke on the condition of anonymity.
The majority of these initial shipments are poised for three significant Chinese internet companies, while additional businesses remain on a waiting list for subsequent deliveries. The identities of the companies receiving the chips have not been made public.
Neither the Chinese governmental bodies overseeing industry and commerce nor Nvidia has issued any public statements on this matter.
The H200 chip, which stands as Nvidia’s second most powerful AI processor, has become a critical topic in the ongoing technological tensions between the U.S. and China. Although the U.S. recently permitted exports of the H200 to China, such shipments necessitated Beijing’s endorsement, which until now posed a significant hurdle.
Earlier this month, the U.S. granted Nvidia permission to sell H200 chips to Chinese clientele in response to a surge in demand. Nevertheless, prior to this, customs in China had blocked shipments, citing a lack of necessary authorization.
Amidst the ongoing uncertainty, Chinese tech firms have made orders for over two million H200 chips, significantly surpassing Nvidia’s current production capabilities.
It remains to be seen how many additional companies will gain approval in future rounds or the specific criteria used by Chinese regulators for granting access.
Nvidia CEO Huang arrived in Shanghai last Friday for the company’s annual events in China and has since visited Beijing and other locations.
This approval indicates that Beijing is prioritizing the requirements of major internet companies that are investing heavily in AI data centers to maintain a competitive edge globally. While firms like Huawei have developed chips that rival Nvidia’s older H20 model — the most advanced chip previously permitted into China — their performance does not match that of the H200.
The H200 offers approximately six times the performance of the H20, making it crucial for sophisticated AI applications and extensive computational demands.
English
