Beijing's Green Light: China Gives Nod for NVIDIA's H200 AI Chips Sale
In a significant development, the Chinese government has given its formal approval to Taiwanese company DeepSeek to purchase NVIDIA's high-end H200 AI chips. According to reports, ByteDance, Alibaba, and Tencent are among other major Chinese firms that have also received permission to buy 400,000 H200 GPUs.
However, the deal is not without strings attached. Chinese authorities are still fine-tuning the conditions they will impose on DeepSeek and other companies before shipments can be made. According to NVIDIA CEO Jensen Huang, his company has yet to receive any orders from these firms, suggesting that Beijing is taking a cautious approach.
This development comes after the US government recently relaxed its restrictions on NVIDIA's sales of H200 processors to vetted Chinese companies in exchange for a 25% tariff on those sales. China had previously discouraged local companies from purchasing NVIDIA's more advanced H20 chips, but has now agreed to import hundreds of thousands of H200 units following Huang's visit.
NVIDIA's technology remains the gold standard for AI chips, with the H200 model being significantly more powerful than its H20 counterpart. However, the company's dominance in this space is also raising concerns about national security and the potential misuse of its technology. As one lawmaker has pointed out, NVIDIA's sale to DeepSeek could raise questions about the firm's involvement in developing AI models used by the Chinese military.
The approval from China's National Development and Reform Commission marks a significant milestone for DeepSeek, which is looking to expand its presence in the global AI market. However, the exact terms of the deal remain unclear, and it may take some time before shipments can be made.
In a significant development, the Chinese government has given its formal approval to Taiwanese company DeepSeek to purchase NVIDIA's high-end H200 AI chips. According to reports, ByteDance, Alibaba, and Tencent are among other major Chinese firms that have also received permission to buy 400,000 H200 GPUs.
However, the deal is not without strings attached. Chinese authorities are still fine-tuning the conditions they will impose on DeepSeek and other companies before shipments can be made. According to NVIDIA CEO Jensen Huang, his company has yet to receive any orders from these firms, suggesting that Beijing is taking a cautious approach.
This development comes after the US government recently relaxed its restrictions on NVIDIA's sales of H200 processors to vetted Chinese companies in exchange for a 25% tariff on those sales. China had previously discouraged local companies from purchasing NVIDIA's more advanced H20 chips, but has now agreed to import hundreds of thousands of H200 units following Huang's visit.
NVIDIA's technology remains the gold standard for AI chips, with the H200 model being significantly more powerful than its H20 counterpart. However, the company's dominance in this space is also raising concerns about national security and the potential misuse of its technology. As one lawmaker has pointed out, NVIDIA's sale to DeepSeek could raise questions about the firm's involvement in developing AI models used by the Chinese military.
The approval from China's National Development and Reform Commission marks a significant milestone for DeepSeek, which is looking to expand its presence in the global AI market. However, the exact terms of the deal remain unclear, and it may take some time before shipments can be made.