Sales of NVIDIA’s H200 chips to China have been effectively halted for nearly two months amidst a U.S. security review, according to sources cited by the Financial Times. The report noted that Chinese customers have not placed significant orders so far due to unclear final licensing terms, as reported by Reuters. NVIDIA and the U.S. Department of State did not respond to requests for comment outside of business hours.
In January, the U.S. Department of Commerce eased restrictions on exporting H200 chips to China, but mandated a multi-level review involving the Departments of State, Defense, and Energy before issuing final licenses. The Financial Times indicated that the State Department is pushing for stricter usage limitations on the chips to prevent any exploit that could undermine U.S. national security.
NVIDIA’s CEO Jensen Huang expressed hope last week that China would permit the sale of H200 chips and that the licensing process was nearing completion, although the actual timeline for starting commercial shipments remains unclear. Previously, China had agreed to import an initial batch of H200 chips, a move seen as a shift in its approach as it seeks to balance its AI needs with the development of its local industry.
The H200 chips are among the most important AI processors globally and play a crucial role in powering large data centers and advanced AI models. Any delay in their entry into the Chinese market could pose potential losses for NVIDIA, while also enhancing competition from local Chinese alternatives, reflecting ongoing technological tensions between the U.S. and China.
