US Clears Nvidia's H200 Chip Sales To 10 China Firms

2026-05-14 02:19:07

(MENAFN- Khaleej Times) The US has cleared around 10 Chinese firms to buy Nvidia's second-most powerful AI chip, the H200, but not a single delivery has been made so far, three people familiar with the matter said, leaving a major technology deal in limbo as CEO Jensen Huang seeks a breakthrough in China this week.

Huang, who was not initially listed in a White House delegation to Beijing, joined the trip after an invitation from President Donald Trump, a source said. Trump picked him up in Alaska en route to a summit with Chinese President Xi Jinping, raising hopes the trip could finally unlock stalled efforts to sell the H200 chips in China.

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The stakes are significant, highlighting how the US-China tech rivalry is now snarling even approved trade, leaving the world's most valuable company and dominant chipmaker caught between duelling national priorities.

Before US export curbs tightened, Nvidia commanded about 95 per cent of China's advanced chip market. China once accounted for 13 per cent of its revenue, and Huang has previously estimated the country's AI market alone would be worth $50 billion this year.

The US Commerce Department has approved around 10 Chinese companies, including Alibaba, Tencent, ByteDance and JD to purchase Nvidia's H200 chips, according to the sources, who spoke on condition of anonymity due to the sensitivity of the matter.

A handful of distributors including Lenovo and Foxconn have also been approved, they said. Buyers are permitted to purchase either directly from Nvidia or through those intermediaries, and each approved customer can purchase up to 75,000 chips under the US licensing terms, two of them said.

The identities of the approved buyers, and the nature of their relationships with Nvidia and the authorised distributors involving the coveted AI chip, have not been previously reported.

A spokeswoman for the US Department of Commerce, which oversees export controls like those on H200 semiconductors, declined comment.

China's Ministry of Industry and Information Technology and the National Development and Reform Commission did not respond to requests for comment.

Lenovo confirmed in a statement to Reuters that the company "is one of several companies approved to sell H200 in China as part of Nvidia's export license."

Nvidia, Alibaba, Tencent, ByteDance, JD and Foxconn did not respond to requests for comment.

Huang told state broadcaster CCTV on Thursday that he hoped Trump and Xi would build on their good relationship during talks in Beijing to improve two-way ties.

Despite US approval, deals have stalled, as Chinese firms pulled back after guidance from Beijing, one source said.

The shift in China was partly triggered by changes on the US side, though exactly what changed remains unclear, the person added.