Nvidia’s Strategic Pivot: Eyeing Major AI Hardware Sales in China Amid Tech Tensions

It seems Nvidia might resume selling its AI accelerators in China. Reuters reports that the company is considering ramping up production of the H200 models. Nvidia has already informed its Chinese clients about its plans to boost H200 production. Potential customers are primarily Alibaba and ByteDance, who reportedly approached Nvidia recently with proposals for major H200 purchases.

Moreover, it is said that the demand is so high that orders have exceeded the limited volumes Nvidia currently produces. This situation has prompted the company to explore ways to increase production volumes. Currently, Nvidia prioritizes the newer Blackwell accelerators. However, these cannot be sold to China, and in recent months, other chips have also not been available to the country.

Despite successes from Huawei and other Chinese firms, Nvidia’s solutions remain more advantageous, convenient, and effective. As mentioned earlier, the latest version of DeepSeek achieved its impressive power partly due to being trained on Nvidia accelerators. It should be noted that China is currently forming whitelists for suppliers of such solutions, but this only affects the state sector. Private companies are still free to purchase Nvidia accelerators directly.