Chinese regulators have approved the purchase of Nvidia’s H200 artificial intelligence chip by several domestic companies, according to a Reuters report on Tuesday citing a source familiar with the matter.
The reported clearance comes shortly after NVIDIA Corporation (NASDAQ:NVDA) CEO Jensen Huang said the company had restarted production of the H200 specifically for the Chinese market and had already received orders from multiple local customers.
Shares of the AI chip leader rose about 1% in premarket trading on Wednesday, as of 05:55 ET.
The H200 is currently the most advanced AI processor Nvidia is permitted to sell in China under updated U.S. export rules. The chip was authorized for sale in the Chinese market by the administration of Donald Trump in late 2025.
However, Nvidia has faced increasing challenges in maintaining its presence in China. U.S. lawmakers have voiced concerns over advanced chip exports, while Chinese authorities have encouraged the use of domestically developed alternatives and tightened scrutiny of foreign-made AI hardware.
In a separate report, Reuters said Nvidia is also working with its recently acquired startup Groq to develop new AI chips aimed at the Chinese market.