:max_bytes(150000):strip_icc()/GettyImages-2256823052-5831496089ef4129963d07a182642db0.jpg "Nvidia’s Plans to Sell More Chips in China Just Cleared a Major Hurdle")
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Key Takeaways
- China’s government has approved several Chinese tech companies to buy Nvidia’s H200 chips, The Wall Street Journal reported Wednesday.
- The Trump administration gave the green light to Nvidia to sell the chips late last year for a 25% cut of revenues.
America’s AI chip leader Nvidia is getting closer to being able to sell more chips in China.
China’s government has given clearance to a few big tech companies in the country including ByteDance and Alibaba (BABA) to start placing orders for Nvidia’s (NVDA) H200 AI chips, The Wall Street Journal reported Wednesday.
The initial approval would allow the companies to buy hundreds of thousands of chips worth around $10 billion, according to the Journal. Nvidia did not respond to a request for comment in time for publication.
Last month, President Donald Trump greenlighted the H200 chips, which were previously banned from export to China on national security grounds, for sale to the country in exchange for Nvidia agreeing to give the U.S. government a 25% cut of sales.
CFO Colette Kress said earlier this month that the U.S. government was “working feverishly” on ironing out the details of that deal, and that Nvidia expected to be able to ship to China soon. However, the company still faced some uncertainty about approval from the Chinese government, which has previously discouraged Chinese companies from buying chips over security concerns.
Huang is in the midst of a trip to China, meeting with employees and potential customers, but not any government officials as of yet, per the Journal.
Nvidia shares were up about 1% in recent trading. They’ve gained more than half their value in the last 12 months, but are down nearly 8% from their October highs.
