TLDR
- ByteDance and Alibaba have inquired about purchasing Nvidia’s H200 AI chips following Trump’s decision to allow exports to China
- The H200 is almost six times more powerful than the H20, the previous most advanced chip allowed for export to China
- Chinese companies await Beijing’s approval before placing large orders, with concerns about limited supply
- Very limited H200 quantities are currently in production as Nvidia focuses on newer Blackwell and Rubin chip lines
- Chinese regulators have gathered company representatives to assess H200 demand, with a decision expected soon
ByteDance and Alibaba have reached out to Nvidia about purchasing the company’s H200 AI chips. This follows President Donald Trump’s announcement that the advanced processors can be exported to China.
Four sources familiar with the discussions confirmed the Chinese tech giants’ interest in the chips. Both companies want to place large orders if they receive approval from Beijing.
The H200 represents a major performance upgrade compared to what was previously available. Before Trump’s decision, the H20 was the most advanced chip China could legally import. The H200 offers nearly six times the processing power of the H20.
Beijing hasn’t yet responded to Trump’s announcement about the H200. The Chinese government recently banned state-funded data centers and domestic tech companies from buying Nvidia’s AI chips. This policy has hurt Nvidia’s market position in China.
Chinese regulators held meetings with representatives from Alibaba, ByteDance, and Tencent Holdings. The officials asked these companies to evaluate their need for the H200 chips. Sources say the companies will receive Beijing’s decision soon.
Supply Concerns Cloud Purchase Plans
Supply remains a key concern for potential buyers. Only limited quantities of H200 chips are currently being produced. Nvidia has shifted its manufacturing focus to the more advanced Blackwell line and the upcoming Rubin series.
The Chinese companies remain interested despite supply uncertainties. They’re seeking clarity from Nvidia about availability and delivery timelines.
Chinese firms want the H200 for its superior AI model training capabilities. Domestic chip alternatives work better for inference tasks but can’t match the H200’s training performance. Sources say this performance gap drives demand for the American-made chips.
The situation has created an unusual trade dynamic. Older Nvidia chips like the A100 and H100 still fall under U.S. export restrictions. Yet the more powerful H200 does not. These older models have been popular in China’s tech sector.
Quiet Purchases Expected
Chinese companies expect they’ll need to submit purchase requests for government review. Beijing may require detailed explanations of how they plan to use the chips. This comes as China tries to boost sales of domestically made AI processors from companies like Huawei and Cambricon.
Elite Chinese universities have tried to obtain H200 chips through unofficial channels. Data center firms and entities linked to China’s military have done the same. A Reuters review of over 100 tenders and academic papers documented these efforts.
Before Trump’s policy change, supplying H200 chips to Chinese entities violated federal law. U.S. regulations prevented AI processors above certain performance thresholds from reaching China.
Zhang Yuchun, a general manager at Chinese cloud provider SuperCloud, explained the dependency on Nvidia. “The training of leading Chinese AI models still relies on Nvidia cards,” he said.
Zhang expects major Chinese tech companies will make purchases. However, he predicts they’ll do so quietly to avoid drawing attention.
China’s foreign ministry has only stated that the country values cooperation with the United States. Officials declined to provide additional comments on the H200 situation.
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