Nvidia secures US license for limited H200 chip sales to China

Nvidia Corp. said it has obtained a US government license allowing it to export a limited number of its H200 artificial intelligence chips to customers in China, marking a cautious step toward reentering the world’s largest semiconductor market.

The leading producer of AI accelerators stated that the license permits shipments of the less advanced H200 chips, provided they undergo inspection in the U.S. and are subject to a 25% duty, News.Az reports, citing Bloomberg.

However, uncertainty remains over whether Chinese authorities will approve the imports. Reflecting that ambiguity, Nvidia said Wednesday it has not included any revenue from China data-center sales in its first-quarter forecast

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The company’s shares were little changed in after-hours trading following the announcement.

Chief Financial Officer Colette Kress told investors during an earnings call that although small quantities of H200 products for China-based customers have been approved by the US government, the company has not yet generated revenue from those shipments and remains unsure whether China will ultimately permit their entry.

Ongoing political tensions between Beijing and Washington have significantly constrained Nvidia’s ability to sell its most advanced chips in China. The country represents a substantial growth opportunity in artificial intelligence hardware — a market that Chief Executive Officer Jensen Huang has estimated could expand to roughly $50 billion in the coming years.

At the same time, the Chinese government is increasing support for domestic competitors, including Huawei Technologies Co. and Cambricon Technologies Corp., as well as newly listed firms such as MetaX Integrated Circuits Shanghai Co. and Moore Threads Technology Co.. Kress reiterated earlier remarks from Nvidia executives, warning that Chinese chipmakers have the long-term potential to reshape the global AI industry landscape.

According to a report by Bloomberg last month, Chinese officials informed major technology companies — including Alibaba Group Holding Ltd. — that they could begin preparing orders for H200 chips, indicating that Beijing may be close to formally authorizing imports of components essential for developing and operating AI models.

The H200 is an older-generation processor that the administration of US President Donald Trump has deemed eligible for export to China. However, Washington continues to block sales of more advanced semiconductors, citing national security concerns.

News.Az 

By Nijat Babayev