During the pre-market trading of Thursday’s session, shares of Nvidia surged 2.6% to $231.7 per share. This followed a report of the U.S. approving Chinese firms to buy Nvidia’s H200 AI chips.
The United States has granted approval to around ten Chinese companies, including major technology firms, to acquire Nvidia’s H200 artificial intelligence chips, according to Reuters citing three individuals familiar with the subject. However, despite these clearances, none of the approved purchases have resulted in deliveries.
Nvidia’s H200, the company’s second-most advanced chip for artificial intelligence, is designed for large-scale AI model training and deployment. Common uses for the chip include generative AI services, cloud platforms, and business applications.
The U.S. Commerce Department has allowed several leading Chinese technology firms—such as Alibaba, Tencent, ByteDance, and JD.com, sources said.
Prior to export controls, Nvidia supplied nearly all of China’s market for advanced AI hardware. At the height of demand, the country accounted for approximately 13% of Nvidia’s global revenue.
However, multiple challenges have hindered any actual sales since approval was granted. U.S. regulations require that Chinese buyers show evidence of sufficient security protocols and ensure the chips are not used for military applications. Nvidia must also demonstrate that it maintains adequate inventory in the United States.
Meta disc: Selected Chinese tech firms receive U.S. approval to buy Nvidia H200 chips, but deliveries stalled as regulatory hurdles persist.
