China has cleared the way for three of its biggest tech companies to import high-end AI chips from US firm Nvidia, marking a significant shift in Beijing's stance on foreign technology imports. The move comes after weeks of uncertainty and follows China's temporary halt to shipments of Nvidia's H200 artificial intelligence chips earlier this month.
The approval is a major win for Nvidia, which had been waiting anxiously for Chinese regulators to give the green light for its most powerful AI chip. The H200 delivers six times the performance of Nvidia's previous most capable chip, the H20, and is seen as crucial for China's tech giants to develop their own high-end AI products.
Beijing has been trying to balance its efforts to boost domestic semiconductor industry capabilities with the need to keep US technology imports flowing. The country has previously discouraged domestic tech companies from purchasing foreign chips unless absolutely needed, but regulators have now relaxed these rules in a bid to support China's growing AI sector.
The approval of Nvidia's H200 chips is seen as a strategic move by Beijing to further its indigenous capabilities and close the gap with US rivals in the AI race. Chinese tech giants such as ByteDance, Alibaba, and Tencent are spending billions of dollars to build data centers needed to develop AI services and compete with US companies like OpenAI.
The latest approvals were made during Nvidia CEO Jensen Huang's visit to China this week, according to sources who spoke on condition of anonymity. Other Chinese firms are now waiting for their own approvals in future rounds, but Beijing is attaching conditions to the licenses that have not yet been finalized.
The approval of high-end AI accelerator chips has become a flashpoint in the ongoing AI race between Washington and Beijing, with US policymakers caught between wanting to boost sales for American semiconductor companies and fearing that exports could help China close the gap in AI capabilities.
The approval is a major win for Nvidia, which had been waiting anxiously for Chinese regulators to give the green light for its most powerful AI chip. The H200 delivers six times the performance of Nvidia's previous most capable chip, the H20, and is seen as crucial for China's tech giants to develop their own high-end AI products.
Beijing has been trying to balance its efforts to boost domestic semiconductor industry capabilities with the need to keep US technology imports flowing. The country has previously discouraged domestic tech companies from purchasing foreign chips unless absolutely needed, but regulators have now relaxed these rules in a bid to support China's growing AI sector.
The approval of Nvidia's H200 chips is seen as a strategic move by Beijing to further its indigenous capabilities and close the gap with US rivals in the AI race. Chinese tech giants such as ByteDance, Alibaba, and Tencent are spending billions of dollars to build data centers needed to develop AI services and compete with US companies like OpenAI.
The latest approvals were made during Nvidia CEO Jensen Huang's visit to China this week, according to sources who spoke on condition of anonymity. Other Chinese firms are now waiting for their own approvals in future rounds, but Beijing is attaching conditions to the licenses that have not yet been finalized.
The approval of high-end AI accelerator chips has become a flashpoint in the ongoing AI race between Washington and Beijing, with US policymakers caught between wanting to boost sales for American semiconductor companies and fearing that exports could help China close the gap in AI capabilities.