US approves Nvidia’s H200 AI chip exports to Alibaba, Tencent and ByteDance as Trump meets Xi – Firstpost

The United States has approved exports of Nvidia’s advanced H200 artificial intelligence chips to several major Chinese technology firms, including Alibaba, Tencent and ByteDance, even as US President Donald Trump held high-stakes talks with Chinese President Xi Jinping in Beijing, Reuters reported on Thursday, citing sources familiar with the matter.

According to a report, around 10 Chinese firms have received approval from the US Commerce Department to buy Nvidia’s H200 chips, the company’s second-most-powerful AI semiconductor currently allowed for export to China. However, no deliveries have taken place yet, with the deals remaining stalled amid mounting political and regulatory scrutiny on both sides.

The approvals come as
Jensen Huang travelled to Beijing alongside Trump after reportedly receiving a late invitation to join the US delegation. Huang’s visit has fuelled expectations that Nvidia could secure a breakthrough in the Chinese market, where the chipmaker has faced tightening export restrictions and growing competition from domestic rivals.

Besides Alibaba, Tencent and ByteDance, Reuters reported that JD.com was also among the approved buyers. Distributors such as Lenovo and Foxconn have also received authorisation to distribute the chips in China.

Sources told Reuters that each approved customer can purchase up to 75,000 H200 chips under US licensing conditions.

Lenovo confirmed to Reuters that it was one of several approved distributors under Nvidia’s export licence arrangement. Nvidia and the other companies did not immediately comment.

Despite the approvals, Chinese companies have reportedly held back from completing purchases after signals from Beijing raised concerns over reliance on foreign technology infrastructure. China has recently intensified scrutiny of overseas supply chains as it seeks to accelerate development of domestic AI chips, particularly through firms such as Huawei.

The uncertainty reflects the increasingly complex technology battle between Washington and Beijing. Before US export controls tightened, Nvidia controlled roughly 95 per cent of China’s advanced AI chip market. China previously accounted for about 13 per cent of Nvidia’s total revenue.

Reuters reported that the stalled deals also stem from stringent US conditions attached to the sales. Chinese buyers must demonstrate that the chips will not be used for military purposes and meet strict security standards, while Nvidia must certify sufficient inventory inside the United States.

Trump has additionally negotiated a structure under which the US government would receive 25 per cent of revenue generated from the chip sales, Reuters said. The arrangement requires the chips to transit through US territory before export to China.

The potential sales have drawn criticism from hardliners in Washington, who argue that allowing Nvidia to continue selling advanced AI chips to China could undermine America’s technological edge.

“Any deal that allows Nvidia to sell more chips to China means fewer Nvidia chips for US firms, and a smaller US lead in AI over China,” Chris McGuire of the Council on Foreign Relations told Reuters.