China Conditionally OKs Nvidia H200 Chip Sale to DeepSeek

Key Approval Details

China has granted conditional approval for AI startup DeepSeek to purchase Nvidia’s H200 artificial intelligence chips, with regulatory terms still being finalized. This development follows reports of similar permissions for Chinese tech giants including ByteDance, Alibaba, and Tencent, who were cleared to buy over 400,000 units in total.

Geopolitical and Industry Context

The Nvidia H200 chip has become a significant element in U.S.-China technology relations. Despite the U.S. clearing the chip for export, final import approval from Beijing has been the main barrier to shipments. The conditional green light highlights China's continued demand for advanced AI hardware amid ongoing tech rivalry. Nvidia's CEO noted the company had not yet received official confirmation, indicating the licensing process is still in its final stages.

Potential Market Impact

This decision is poised to bolster Nvidia's revenue from the significant Chinese market. For the broader AI sector, it ensures that key players retain access to crucial high-performance computing resources. The finalized conditions, set by China's National Development and Reform Commission, will be critical in shaping the deal's ultimate impact on global semiconductor supply chains and related stock valuations.

Summary and Outlook

While the conditional approval is a positive step for Nvidia and Chinese AI firms, the market awaits the final regulatory stipulations. These terms, along with potential scrutiny from U.S. lawmakers regarding the use of these chips, will be the key factors to monitor moving forward.

FAQ

Q: Which specific Nvidia chip was approved?
A: The Nvidia H200, the company's second most powerful AI chip, received conditional approval for purchase by DeepSeek.

Q: Is the approval for the chip sale final?
A: No, the approval is conditional. The final terms are still being decided by Chinese regulatory authorities.

Source: Investing.com