China set to approve Nvidia H200 imports as Alibaba and ByteDance prepare massive chip orders

China expected to approve H200 imports in early 2026, report claims -- tech giants Alibaba and ByteDance reportedly ready to order over 200,000 Nvidia chips each if green-lit by Beijing

China is expected to allow its tech giants to finally import Nvidia H200 chips about a month after President Donald Trump approved its export to its Asian rival. Sources say that Beijing will allow domestic corporations to purchase these chips for commercial use, as reported by Bloomberg. However, it seems that this won't be a blanket approval -- instead, it will likely come with caveats, like requiring companies to buy a number of homegrown chips alongside their imports. Furthermore, military, sensitive government agencies, critical infrastructure, and state-owned enterprises aren't allowed to acquire and use these American-made chips due to security concerns. The H200 is one generation behind the latest Blackwell AI GPUs, and with the upcoming Vera Rubin NVL72 now in production, it's expected that the H200 will further fall behind in performance. However, it's still relatively much more powerful than Nvidia's H20 chips, which the company made in response to the White House's bans, and the latest offerings from homegrown chip manufacturers in China. Because of this, local tech giants like Alibaba and ByteDance are reportedly gearing up to order over 200,000 H200 AI GPUs, each, once they receive approval from Beijing. Smaller startups are also expected to place orders for these chips, which are crucial for training their latest models that would allow them to compete against OpenAI's ChatGPT and other LLMs from the U.S. This news of impending approval and massive interest is great news for Nvidia, especially as its market share in China has essentially fallen to zero from a high of 95% just a few years earlier. This was caused by the increasing tensions between the U.S. and China, with a trade war between the two sides resulting in a complete ban of Nvidia's most powerful offerings to China in April 2025, including those specifically made to follow Washington, D.C.'s earlier limitations like the H20 and RTX 5090D. This was lifted in July of the same year, with the U.S. government promising that it will grant export licenses for the H20 soon. However, it was Beijing's turn to enact a ban, preventing its biggest tech companies from purchasing China-specific hardware like the RTX Pro 6000D, claiming that its homegrown chips are now as capable as these offerings. The situation between the two rivals have softened recently, though, with the U.S. and China agreeing on a one-year tariff truce. And even though Blackwell's availability wasn't discussed between the two parties, it seemed that China was able to win some concessions from the U.S. for allowing the sale and export of Nvidia's last-generation AI chip. This is a win for both Nvidia and Chinese AI companies, although we still don't know how it will affect local chip manufacturing. Beijing's dilemma at the moment is how it will balance the need of its AI tech companies for the latest, most powerful chips and the advancement of its homegrown semiconductor industry. But even as the Chinese CCP is considering how it will approach this problem, Chinese tech giants are already lining up to get their share of Nvidia's H200 AI GPUs.

Alibaba Shares Rise as China Plans Approval of H200 Imports

Alibaba Group Holding Ltd. shares jumped on optimism that the tech giant can benefit if Nvidia Corp.'s H200 chips are made available in China. The stock climbed as much as 4.8% in Hong Kong, the most since Nov. 24, after China's plans to approve some imports of the H200 chips as soon as this quarter. Other Chinese artificial intelligence firms Kuaishou Technology and JD.com Inc. also gained more than 4% each. The shares are boosted by the expectation that China may allow domestic players to use H200 chips, which should bode well for firms like Alibaba, said Vey-Sern Ling, managing director at Union Bancaire Privee. Access to these AI semiconductors would help Chinese firms upgrade and run their models as they seek to compete with the likes of OpenAI and other US rivals. The H200 is an older-generation chip that the Trump administration has said can be exported to China. The US government restricts sales of more advanced processors on national security grounds. Alibaba has been the biggest spender among Chinese firms to power AI-related businesses, and a secure chip supply is expected to boost its cloud segment. That bodes well for the stock, which has declined more than 20% from a peak in early October amid concerns over its core e-commerce earnings and Beijing's regulations on live-streaming businesses. The tech giant has told Nvidia in private that it is interested in ordering more than 200,000 units of the H200, according to a person familiar with the matter.

Nvidia Sees a Big Sales Opportunity in China. Locking It Up Hasn't Been Easy

The Chinese government's latest moves to halt sales could endanger those plans, however. Will Nvidia ever get to sell more of its AI chips in China? Investors see the country as a big opportunity -- but getting there has been a challenge. CEO Jensen Huang said this week that Nvidia (NVDA) is looking forward to selling its H200 AI chip in China after winning President Donald Trump's approval in exchange for agreeing to give the U.S. government a 25% cut of sales. CFO Colette Kress yesterday said the U.S. government is "working feverishly" on the details, and the company expects to begin shipping to China soon. But the Chinese government's latest moves to halt sales could hobble those plans. Beijing has ordered companies to halt H200 orders, and could follow with a mandate that firms buy domestic chips instead, The Information reported Wednesday. An Nvidia spokesperson declined to comment on the report. More access to China's market, which Huang has said could be a $50 billion annual opportunity for Nvidia, would represent a significant source of growth for the company. (Nvidia is expected to report full-year revenue above $210 billion.) The chipmaker's latest forecasts did not take China sales of the H200, or H20 that Trump greenlighted back in August, into consideration. The H20, a less-powerful chip designed specifically for China's market, has also met challenges from Beijing after receiving Trump's backing. The approvals also face opposition at home, with bipartisan efforts by U.S. lawmakers in recent weeks to block the sales. In a note to clients yesterday, analysts at Morgan Stanley nodded to possible sales of the AI chips in China as a source of potential upside for the company, but excluded them from their base case for the stock amid lingering political uncertainty. Analysts at Jefferies and Bernstein, who like Morgan Stanley hold "buy" or equivalent ratings on the stock, have also voiced some skepticism about the likelihood of sales. Shares of Nvidia rose about 1% Wednesday, leaving them little changed for 2026 after climbing close to 40% last year.

Nvidia CEO says purchase orders, not formal declaration, will signal Chinese approval of H200

Earlier on Tuesday in an interview with a JPMorgan analyst, Nvidia CFO Colette Kress said that the U.S. government is "working feverishly" on license applications for Nvidia to ship its H200 chips to China, but that the company still does not know when they will be approved. Nvidia CEO Jensen Huang said on Tuesday he does ⁠not believe China's government will make a formal declaration that it has allowed Chinese firms to import the U.S. company's H200 chips but that evidence will come through purchase orders. "My expectation is that we're not expecting any press releases or any large declarations," Huang said, after saying that demand for the H200 chips was strong among Chinese customers. "It's just going to be purchase orders. If the purchase orders come, it's because they're able to place purchase orders," Huang said during a press conference at the Consumer Electronics Show in Las Vegas. U.S. President Donald Trump last year reversed a longstanding ban on shipping advanced artificial intelligence chips to China, saying he would allow Nvidia to sell the H200, which was the predecessor to its current flagship "Blackwell" chips. Earlier on Tuesday in an interview with a JPMorgan analyst, Nvidia CFO Colette Kress said that the U.S. government is "working feverishly" on license applications for Nvidia to ship its H200 chips to China, but that the company still does not know when they will be approved. "We're going to wait and see what will happen," Kress said of the applications. At the press conference, Huang said that Nvidia is ramping up H200 chips for Chinese firms. "The customer demand is high - quite high," Huang said. "We've fired up our supply chain, and H200s are flowing through the line." On Monday, Nvidia showed a sextet of new chips that it said are in full production to form the next "Vera Rubin" generation of its AI computing systems. Kress declined to say whether Nvidia was facing any specific bottlenecks as it ramps up production but said "we feel very solid" about the state of its supply chain. Nvidia has called for $500 billion in sales from its current "Blackwell" generation as well as the forthcoming Vera Rubin chips by the end of this year. Kress said there have "already been discussions" about data center buildouts with customers for 2027 but did not give sales guidance. Huang said demand is high for Nvidia products across the board. "I'm fully expecting a really giant year for our business with TSMC," Huang said, referring to Taiwan Semiconductor Manufacturing Co, which makes most of Nvidia's chips. Huang also said that he plans a visit ⁠soon to Israel, where the company has ⁠5,000 employees and is looking to double its workforce. Local media reported last month that Nvidia is in talks to buy Israeli firm AI21 Labs. He did not comment on that story or any other possible acquisition targets, but said he is open to more dealmaking. "We might invest in, partner with, and we might, of course, acquire some semiconductor companies," Huang said. Responding to a Reuters question about whether his relationship with Trump played any role in Nvidia's decisions around a deal for chip startup Groq - which was backed by 1789 Capital, a firm where Trump's son Donald Trump Jr is a partner - Huang said he was unaware that 1789 Capital was a Groq investor. "I didn't know that," Huang said. "I guess good for them, but I didn't know that at all."

Alibaba Steps Up AI Race With Potential Nvidia Mega Order - Alibaba Gr Hldgs (NYSE:BABA)

Alibaba Group Holding Ltd. (NYSE:BABA) stock rose Thursday after reports signaled expanded access to Nvidia Corp.'s (NASDAQ:NVDA) advanced artificial intelligence chips in China. The Chinese e-commerce giant pared some of those gains in early Friday trading, following a rally of more than 5% the prior session. The Thursday move came after reports that China may approve limited imports of Nvidia's H200 chips as soon as this quarter. Nvidia is tightening its sales of H200 artificial intelligence chips to China as it works to reopen a critical market while managing geopolitical tensions between Washington and Beijing. The company now requires Chinese customers to pay in full upfront for H200 orders and to accept rigid, no-flexibility terms, Reuters reported. Regulatory Signals From Beijing At the same time, Chinese regulators are preparing to approve limited H200 imports as soon as this quarter for select commercial uses, while restricting access for the military, sensitive government agencies, and state-owned enterprises, according to Bloomberg. Officials have also asked some Chinese technology firms to temporarily pause orders and are considering requirements that buyers purchase domestically made chips alongside Nvidia products. Against that backdrop, Alibaba has privately told Nvidia that it is interested in ordering more than 200,000 units of the H200, Bloomberg reported on Friday, citing a source familiar with the matter. Analyst Commentary Investors responded to expectations that China will allow domestic companies to use Nvidia's H200 chips, a development that would support firms such as Alibaba, Vey-Sern Ling, managing director at Union Bancaire Privee, told Bloomberg on Friday. The H200 is an older-generation chip that the Trump administration has said can be exported to China amid escalating geopolitical tensions between the countries. Alibaba has emerged as the largest AI spender among Chinese technology companies, and a more reliable chip supply would strengthen its cloud business. The stock gained 92% over the last 12 months, driven by strong investor confidence in its substantial investments and growth in AI, particularly in its cloud computing division. BABA Price Action: Alibaba shares were down 2.51% at $150.59 during premarket trading on Friday, according to Benzinga Pro data. Photo by Mamun_Sheikh via Shutterstock BABAAlibaba Group Holding Ltd$150.59-2.51%OverviewNVDANVIDIA Corp$185.840.43%Market News and Data brought to you by Benzinga APIs

China Plans to Approve Imports of Nvidia's H200 AI Chips as Early as This Quarter. Here's What It Means for Investors

After previously banning Nvidia's (NVDA +0.02%) H200 artificial intelligence (AI) chips, the Chinese government appears poised to approve the import of these processors, according to a report by Bloomberg, which cited "people familiar with the situation." This would mark the reentry into an important market for the chipmaker. Regulators will reportedly permit the sale of these older-generation AI chips to commercial and technology customers, although details remain sketchy. There will be limitations, however. China will prohibit the use of these chips from government agencies, military applications, critical infrastructure, state-owned businesses, or other applications that may pose security concerns, according to the report. A $50 billion opportunity? The stakes are high. In calendar 2024, which marked the last full year of sales to China, Nvidia's revenue from the country was $17.1 billion -- despite existing export restrictions against the sale of its top-of-the-line chips. Early last year, Nvidia estimated it took an $8 billion revenue hit due to increased U.S. export restrictions. CEO Jensen Huang previously stated that there was "very high" demand for the chips in China, and suggested that sales there could top $50 billion per year if approved. That figure could well be conservative. The company already has orders from Chinese customers for more than 2 million H200 chips and plans to charge $27,000 each for the processors, according to a report by Reuters. This would result in additional revenue of about $54 billion. Subtracting the 25% export levy that will be due to the U.S. government, Nvidia could net more than $40 billion from existing orders alone. Sales to China are currently excluded from Nvidia's outlook, so this would represent a material increase to the company's existing guidance. Nvidia has previously stated that sales of AI-centric data center processors are expected to generate $500 billion for the six quarters ending in early 2027. During the CES keynote address this week, Huang suggested that the figure was too conservative and its revenue outlook has only gotten brighter. Analysts' consensus estimates for Nvidia's revenue next year clock in at $320 billion. Add to that a $40 billion boost to revenue, combined with its current 56% net profit margin, could potentially drive Nvidia's earnings per share (EPS) to $8.29. Using its current price-to-earnings (P/E) ratio of roughly 46 would result in a share price of about $380, more than double its current level. Simply put, Nvidia's reentry into the Chinese market could be a windfall for shareholders.

China appears poised to allow Nvidia imports as soon as this quarter:...

Beijing officials plan to approve some Nvidia imports as soon as this quarter after they forced Chinese firms to pause their orders for the Silicon Valley firm's H200 chips, according to reports. China is preparing to allow local tech firms to buy the H200 chip for select commercial use, though it will still be banned from the military, government agencies and state-owned enterprises over national security concerns, sources familiar with the matter told Bloomberg. The planned approval still represents a major win for Nvidia, which has effectively been banned from selling AI chips to customers in China - the world's largest semiconductor market - since 2022. That squeezed Nvidia's market share in China down from 95% to zero, according to CEO Jensen Huang. Nvidia declined to comment. The Chinese Embassy did not immediately respond to The Post's request for comment. Chinese officials have been meeting with local tech companies in recent weeks to debate whether they should allow Nvidia imports and weigh potential regulations like requiring firms to buy a certain ratio of Chinese chips alongside any H200 purchases, sources told the Information. The Chinese government told tech companies to halt their orders for H200 chips this week to prevent local firms from rushing to stockpile foreign semiconductors before it reaches a decision, a source told the outlet. After President Trump in December reversed a Biden-era ban that restricted Nvidia from selling its H200 chips to China, on the condition that Nvidia gives 25% of the resulting revenue to the US government, Chinese customers rushed to place their orders. The White House argued that Nvidia should be able to sell its H200 chips to China because it is a less advanced model compared to newer chips - a move that could help Nvidia regain billions of dollars in lost business from the massive market. Nvidia has been placing unusually strict requirements around these orders, forcing Chinese customers to submit full upfront payments for its H200 chips, sources told Reuters. The company has not been giving Chinese customers any options to cancel, request refunds or change the configurations of their orders, according to the report. Nvidia has been particularly stringent about H200 payments since it is unclear whether Chinese regulators will actually allow the shipments, a source told Reuters. As of last month, Chinese tech firms had placed orders for more than 2 million H200 chips - more than Nvidia's inventory of 700,000, according to Reuters. Each semiconductor is priced at roughly $27,000. Alibaba and ByteDance have both privately told Nvidia that they are considering ordering more than 200,000 units each of the H200 chips, according to Bloomberg. Demand from China has been so high that Nvidia needed to request additional capacity from Taiwan Semiconductor Manufacturing Company, its primary supplier, according to the Information. Huang nodded to that strong demand during the CES tech conference in Las Vegas this week, though he said Nvidia is unsure when China might give its chips a stamp of approval. Nvidia typically sells its AI chips to server manufacturers like Dell Technologies, Super Micro Computer and Lenovo, which build the semiconductors into systems before selling to customers. Chinese rivals like Huawei Technologies and Cambricorn have been racing to catch up with Nvidia's tech and are currently planning to ramp up production in 2026, scooping up some of the market share left in Nvidia's absence. But Beijing still lacks AI processors on par with Nvidia's models, experts say.

Nvidia CEO Huang Says Purchase Orders Likely to Indicate Chinese Approval of H200 Chip

NVIDIA Corporation is the world leader in the design, development, and marketing of programmable graphics processors. The group also develops associated software. Net sales break down by family of products as follows: - computing and networking solutions (89%): data center platforms and infrastructure, Ethernet interconnect solutions, high-performance computing solutions, platforms and solutions for autonomous and intelligent vehicles, solutions for enterprise artificial intelligence infrastructure, crypto-currency mining processors, embedded computer boards for robotics, teaching, learning and artificial intelligence development, etc.; - graphics processors (11%): for PCs, game consoles, video game streaming platforms, workstations, etc. (GeForce, NVIDIA RTX, Quadro brands, etc.). The group also offers laptops, desktops, gaming computers, computer peripherals (monitors, mice, joysticks, remote controls, etc.), software for visual and virtual computing, platforms for automotive infotainment systems and cloud collaboration platforms. Net sales break down by industry between data storage (88.3%), gaming (8.7%), professional visualization (1.4%), automotive (1.3%) and other (0.3%). Net sales are distributed geographically as follows: the United States (46.9%), Singapore (18.2%), Taiwan (15.8%), China and Hong Kong (13.1%) and other (6%).