Beijing Tells Alibaba, Tencent, ByteDance To Prepare Nvidia AI Chip Orders

Chinese regulators are nearing approval for Nvidia’s H200 AI chips for top domestic tech firms, including Alibaba, Tencent, and ByteDance, signaling Beijing is moving closer to formally green-lighting imports of last-generation AI accelerators, according to a Bloomberg report.

Approval would represent a material bull catalyst for Nvidia stock and a major win for CEO Jensen Huang, who has stated that the China AI chip opportunity alone could generate up to $50 billion in revenue over the coming years.

This report is notable given Nvidia shares have recently stalled below the $200 level. Any resumption of H200 shipments to China would potentially reignite upside momentum.

The Bloomberg report noted:

The companies are now cleared to discuss specifics such as the amounts they would require, the people said, asking to remain unidentified discussing private talks.

The report did reveal one caveat:

Beijing will encourage companies to buy a certain amount of domestic chips as a condition for approval, according to the people, though no exact number has been set.

H200 is a last-generation chip that the Trump administration has allowed to be exported to China. There have been a number of reports in recent weeks telegraphing the move by Chinese regulators:

• China To Limit Nvidia’s H200 Chip Access After Trump Greenlights Exports

• Nvidia Prepares To Ship H200 AI Chips To China By Mid-February

• China Set To Approve Nvidia H200 AI Chip Purchases As Soon As This Quarter

• ByteDance Plans $14 Billion Nvidia H200 AI Chip Buying Spree As Computing Demand Soars

Beijing appears set to approve imports of Nvidia’s H200 chips for major tech firms, while still prioritizing the buildout of domestic AI semiconductor production. This move only suggests a very real admission that China cannot yet meet domestic AI compute demand and must rely on downgraded US chips from Nvidia.