China has granted its leading artificial intelligence startup, DeepSeek, conditional approval to purchase Nvidia’s H200 AI chips. This decision, which comes with regulatory conditions that are still being finalised, marks a significant development in the ongoing tech rivalry between the United States and China.
According to sources familiar with the matter, ByteDance, Alibaba, and Tencent have also received authorization to acquire more than 400,000 H200 chips collectively. While Nvidia’s Chief Executive Officer, Jensen Huang, stated during a press conference in Taipei that the company had not yet been informed of the approval details, he expressed confidence that China was still in the process of finalizing the necessary licensing. Nvidia has not responded to inquiries regarding DeepSeek’s approval.
China’s Ministry of Industry and Information Technology, Ministry of Commerce, and the National Development and Reform Commission (NDRC) have reportedly granted approvals for all four companies. However, the conditions tied to these approvals remain under consideration by the NDRC, as indicated by one of the sources. Requests for comments from the relevant Chinese ministries went unanswered.
DeepSeek has gained attention in the global tech industry after introducing AI models last year at a fraction of the cost of competitors like OpenAI. The H200 chip, which ranks as Nvidia’s second most powerful AI chip, has become a focal point in U.S.-China relations. Despite a robust demand from Chinese companies and U.S. authorization for exports, China’s reluctance to permit imports has been a significant obstacle to shipments.
Earlier this month, the U.S. formally approved Nvidia’s sale of the H200 to China, where the company has observed a strong interest in its products. Nonetheless, the ultimate decision regarding shipments rests with Chinese authorities. Should DeepSeek proceed with its purchase of H200 chips, it may attract scrutiny from U.S. lawmakers. Notably, a senior U.S. politician alleged in a letter to U.S. Commerce Secretary Howard Lutnick that Nvidia had assisted DeepSeek in developing AI models that were subsequently utilized by the Chinese military.
Looking ahead, DeepSeek is poised to unveil its next-generation AI model, V4, which will feature enhanced coding capabilities, in mid-February, as reported earlier this month by The Information.
As the landscape of AI technology continues to evolve rapidly, the implications of these developments will be closely monitored by both industry experts and government officials on both sides of the Pacific.
