US Softens Stance, 10 Chinese Companies Allowed to Use Nvidia H200 AI Chips

The US government has reportedly given the green light to around 10 Chinese technology companies to purchase Nvidia H200 AI chips.

According to a Reuters report, the US Department of Commerce has approved these licenses.

Some of the companies mentioned include Alibaba, Tencent, ByteDance (the parent company of TikTok), and JD.com. In addition, distributors such as Lenovo and Foxconn are also said to have received permission to sell the chips in China.

Each company is reportedly allowed to purchase up to 75,000 H200 chips under the terms of the US license.

The Nvidia H200 is not actually the most advanced AI chip. This chip is a version with reduced capabilities to ensure it still meets US export regulations for China.

Previously, the US tightened exports of Nvidia H200 chips to China in order to protect the dominant position and technological superiority of the US. However, these export controls are now being relaxed, but with strict conditions.

Nvidia is also required to ensure that chip stocks are available in the US before being shipped to China.

In addition, the Donald Trump administration reportedly created a special scheme in which the US would receive 25 percent of the revenue from the sale of the chips.

Because US law does not allow for direct export levies, the chips must first pass through US territory before being shipped to China.

This scheme is said to have raised concerns in Beijing about potential security loopholes or manipulation of the hardware being shipped.

One of Reuters’ sources said that Chinese companies have begun to refrain from buying the chips after receiving instructions from the Beijing government.

China is reportedly concerned that dependence on Nvidia AI chips will weaken their ambition to build their own domestic industry.

Currently, a number of Chinese companies are starting to switch to using local chips, such as those made by Huawei.