Beijing has reportedly granted DeepSeek approval to acquire NVIDIA's high-performance H200 AI chips, a significant development in China's pursuit of advanced artificial intelligence capabilities. This authorization extends to other major Chinese tech firms, including ByteDance, Alibaba, and Tencent, who are slated to procure a combined total of 400,000 H200 GPUs. While official conditions for these purchases are still being finalized by Chinese authorities, this move signals a shift in Beijing's stance on accessing cutting-edge foreign AI hardware, a sector where U.S. export controls have previously imposed significant constraints.
Shifting Sands of AI Hardware Access
The U.S. government's decision in December 2025 to permit NVIDIA to sell its H200 processors, alongside the H20 model, to approved Chinese entities marked a notable policy adjustment. This eased restriction, however, came with a stipulation: a 25 percent tariff on these sales. Previously, China had discouraged domestic companies from acquiring NVIDIA's H20 chips. The subsequent agreement to allow hundreds of thousands of H200 units following NVIDIA CEO Jensen Huang's visit to China underscores the enduring demand for NVIDIA's technological edge, even as Chinese firms like Huawei and Baidu strive for self-sufficiency in AI chip manufacturing.
NVIDIA's H200 chip is positioned as the second most powerful offering from the company, surpassed only by the B200, and represents a substantial leap in computational power, reportedly six times more potent than the H20. The National Development and Reform Commission is tasked with establishing the specific prerequisites Chinese companies must meet to finalize their H200 orders. NVIDIA CEO Jensen Huang has indicated that his company has not yet received formal orders and believes China is still working through its licensing protocols. This suggests the approval is a necessary but not yet sufficient condition for the transactions to proceed.