TLDR
- China’s regulators conditionally approved DeepSeek to buy Nvidia H200 chips, with final terms still being decided by the National Development and Reform Commission
- ByteDance, Alibaba, and Tencent also secured approval to purchase over 400,000 H200 chips total across the three companies
- Nvidia CEO Jensen Huang said the company hasn’t received official word and expects China to finalize licensing details soon
- Congressional lawmakers claim Nvidia assisted DeepSeek in creating AI models possibly used by Chinese military forces, which Nvidia disputes
- The H200 represents Nvidia’s second strongest AI chip and has become a key issue in U.S.-China technology disputes
Chinese authorities gave conditional approval for DeepSeek to buy Nvidia’s H200 artificial intelligence chips. The final regulatory terms are still being worked out, according to sources speaking with Reuters.
DeepSeek isn’t alone in getting the green light. ByteDance, Alibaba, and Tencent received similar approvals to purchase more than 400,000 H200 chips collectively.
China’s industry and commerce ministries signed off on all four tech companies. The National Development and Reform Commission is handling the final conditions for these purchases.
Nvidia CEO Jensen Huang addressed reporters in Taipei on Thursday. He said the company hasn’t gotten official confirmation yet. Huang believes Chinese regulators are still hammering out the licensing details.
H200 Chips Create Cross-Border Friction
The H200 chip sits as Nvidia’s second most powerful AI processor. It’s turned into a major sticking point between Washington and Beijing.
Chinese tech firms desperately want these chips. The U.S. government approved exports in early January. But Beijing holds the ultimate power to allow imports, which has held up deliveries.
DeepSeek shook up the AI world last year by launching models that cost a fraction of what U.S. rivals like OpenAI charge. The company is set to release its V4 model with improved coding features in mid-February.
Washington Raises Red Flags
Any H200 sales to DeepSeek might trigger pushback from U.S. officials. A senior Congress member claimed Wednesday that Nvidia helped DeepSeek build AI models that ended up in Chinese military hands.
The lawmaker wrote to U.S. Commerce Secretary Howard Lutnick detailing these allegations. Nvidia rejected all claims outright.
If Beijing approves the imports, Nvidia could see a major revenue bump. Chinese AI companies are hungry for H200 chips to power their systems.
Investors Watch and Wait
Nvidia stock fell 0.71% in pre-market hours Friday. The market is holding back until the deal terms become clear and the revenue picture sharpens.
Analysts continue backing Nvidia strongly. Out of 40 recent ratings, 38 recommend buying the stock. Only one suggests holding and one says sell. Price targets point to 36.51% potential gains.
The approvals mark a step forward for Nvidia’s China business. But political headwinds between the two superpowers keep creating obstacles.
Chinese regulators keep final say over chip imports even after U.S. export clearance. This setup has slowed potential shipments as companies wait for Beijing’s decision.
DeepSeek didn’t respond to requests for comment. China’s Ministry of Industry and Information Technology, Ministry of Commerce, and NDRC also stayed silent when asked about the approvals.
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