"According to an exclusive report, Nvidia CEO Jensen Huang just secured U.S. approval for sales of Nvidia's prized H200 AI chips to 10 Chinese firms, including Alibaba, JD.com, ByteDance, and Lenovo, during President Donald Trump's China trip. Reuters reported the potential deals could open access to a Chinese AI market estimated at roughly $50 billion annually."
"That does not mean Nvidia is back to business as usual in China. Beijing still must approve the transactions, but this appears to be the clearest sign yet that Washington may be softening its stance on limited AI chip exports. For Nvidia shareholders, that matters."
"According to Nvidia's fiscal 2025 annual report, China represented approximately 13% of total revenue, or $17.1 billion - up 66% from the year before and almost triple the amount from fiscal 2023 - before tighter export controls sharply reduced shipments of advanced AI processors."
"The H200 is one of Nvidia's most sought-after AI accelerators, designed for training and inference workloads powering large language models and cloud AI systems. These are the chips companies need if they want to compete seriously in generative AI, and China's demand has not disappeared simply because restrictions were imposed."
Washington tightened export controls while Beijing pursued self-reliance, turning AI chip trade into a geopolitical issue. Nvidia’s CEO reportedly secured U.S. approval to sell H200 AI chips to 10 Chinese firms during President Donald Trump’s China trip, including Alibaba, JD.com, ByteDance, and Lenovo. The potential deals could provide access to a Chinese AI market estimated at about $50 billion annually. Beijing still must approve the transactions, so sales are not automatic. China previously contributed about 13% of Nvidia’s fiscal 2025 revenue, totaling $17.1 billion, before export restrictions reduced shipments of advanced processors. Demand for H200 remains because it supports training and inference for large language models and cloud AI systems. Chinese cloud companies continue investing in AI infrastructure despite limited access, while domestic alternatives from Huawei have expanded.
Read at 24/7 Wall St.
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