Nvidia H200 AI Chips Approved for Alibaba, Tencent & ByteDance
Nvidia H200 AI Chips Approved for Alibaba, Tencent & ByteDance
Chinese regulators have quietly told some of the country’s biggest tech giants, including Alibaba, Tencent, and ByteDance, that they can start preparing orders for Nvidia’s H200 AI chips. This move suggests Beijing is nearing formal approval for imports of these crucial components, which power artificial intelligence systems.
What This Means for Chinese Tech
Sources familiar with the matter say that Alibaba, Tencent, and ByteDance have received in-principle approval to move forward with purchase preparations. This means they can now discuss specifics, like the quantities of H200 chips they’ll need. While Beijing plans to encourage these companies to buy some domestic chips as part of the deal, the exact requirements haven’t been finalized.
The guidance marks a shift in China’s approach. Earlier reports suggested that shipments of H200 chips were being blocked, with suppliers pausing production amid trade tensions. Now, it seems the government is prioritizing the needs of its largest hyperscalers, which are investing billions in data centers and AI infrastructure.
Market Impact
The news boosted market sentiment. Nvidia shares rose as much as 2.3% in premarket trading, while Taiwan Semiconductor Manufacturing Co. (TSMC) ADRs gained 1.3%. Investors are watching closely because the approval would signal that Nvidia can resume business in the world’s largest semiconductor market.
For Nvidia, this is a major opportunity. CEO Jensen Huang has previously projected that the AI chip segment alone could generate $50 billion in revenue in the coming years. Meanwhile, local Chinese rivals like Huawei and Cambricon Technologies have been ramping up production to fill the gap, preparing to compete aggressively.
Why H200 Chips Are Important
The H200 is an older-generation AI chip that, under U.S. export rules, can be sold to China, unlike cutting-edge models restricted for national security reasons. These chips are vital for training and running AI models, making them highly sought after by Chinese tech firms racing to compete with OpenAI and other global leaders.
Sources report that Alibaba and ByteDance are considering orders of more than 200,000 H200 units each, while smaller startups like DeepSeek are also upgrading their AI systems using these chips.
The Regulatory Landscape
While Nvidia sees strong demand in China, the company hasn’t directly negotiated with Beijing on approval, and the timeline for greenlighting sales remains unclear. Licenses have been submitted to the U.S. government, with final approvals pending.
China is still focused on self-sufficiency in chipmaking, offering incentives of up to $70 billion for domestic semiconductor development. H200 imports, when approved, would likely exclude sensitive agencies and critical infrastructure, reflecting the delicate balance between tech growth and national security.
This isn’t the first time Chinese regulators have limited Nvidia chip imports. Mid-2025 saw orders for less powerful H20 processors halted, and the RTX Pro 6000D workstation chip was also restricted, even though both can be repurposed for AI.
Why It Matters
If China formally approves H200 shipments, it’s a win-win: Chinese tech firms get the hardware they need to advance AI projects, and Nvidia re-enters a key market after months of uncertainty. It also highlights how Beijing is carefully managing access to foreign technology while pushing domestic innovation.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. All figures and facts are based on publicly available sources at the time of writing.
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