Report Suggests China May Permit Limited H200 Chip Sales
Nvidia (NASDAQ:NVDA) could regain limited access to the Chinese artificial intelligence market, according to a report from The Information, which said Beijing is considering allowing domestic companies to purchase a restricted number of the chipmaker’s H200 AI processors.
The report says Chinese technology groups including Alibaba, ByteDance and DeepSeek have been informed they may be eligible to acquire the chips, provided they disclose both the quantity required and their intended use before receiving approval.
Authorities have reportedly not finalized the allocation, although The Information said the total number of H200 chips approved could remain below 200,000 units. That figure would represent only a modest deployment, given that a single large AI data centre can operate with more than 400,000 Blackwell processors.
Nvidia Continues to Exclude China Revenue
Speaking in May, Nvidia Chief Financial Officer Colette Kress said the company had not generated any revenue from H200 chip sales in China.
“We don’t know if imports will be allowed into the country,” she said, explaining that Nvidia had therefore excluded any China-related H200 revenue from its financial guidance.
The potential policy shift follows China’s restrictions on Nvidia chip sales, which remained in place despite U.S. President Donald Trump authorising the company to resume certain processor exports last December.
AI Demand Challenges Domestic Semiconductor Strategy
China has been seeking to reduce dependence on imported semiconductors by strengthening its domestic chip industry while also citing cybersecurity concerns.
However, according to sources cited in the report, rapidly growing demand for AI computing capacity is encouraging authorities to reconsider limited imports of Nvidia’s H200 processors. Chinese AI developers, like their counterparts in the United States, continue to face shortages of computing resources needed to train and deploy increasingly advanced AI models.
Commenting on U.S. chip export policies, Chinese Embassy spokesperson Liu Chang said:
“We advocate that China and the United States can achieve mutual benefits and win-win outcomes through cooperation, and we oppose the politicization, instrumentalization, and militarization of technological and economic issues. We stand ready to work with all parties to jointly safeguard the stability of global industrial and supply chains.”
Nvidia Reportedly Invests in Australian Cloud Startup
Separately, the Australian Financial Review reported that Nvidia has invested in Australian cloud infrastructure company Firmus Technologies ahead of its planned stock market listing.
According to the report, Nvidia contributed approximately A$720 million (around US$500 million) as part of a broader A$2 billion capital raising. The investment was made through preferred shares that will convert into ordinary shares when Firmus completes its initial public offering, making Nvidia the company’s largest shareholder.
Following the investment, Firmus is reportedly valued at A$15.5 billion, nearly double its previous valuation.
The funding will be used to purchase Nvidia processors for a new data centre in Launceston and to support the company’s wider expansion across Australia.
Firmus is expected to seek shareholder approval in July for the capital increase supporting its IPO, along with a proposed 50-for-1 stock split designed to lower the share price ahead of its Sydney Stock Exchange debut.