Few Nvidia H200 AI chips shipped to China, says U.S. trade official

Limited Shipment of H200 Chips

U.S. Under Secretary of Commerce for Industry and Security Jeffery Kessler reported at a congressional hearing that only a 'very small quantity' of Nvidia's H200 chips have been shipped to China. This statement suggests that shipments, previously restricted, may have begun again.

Context of U.S.-China Trade Relations

Nvidia has historically faced trade restrictions and technology export limitations when it comes to China. Despite being a significant market for AI development, many of Nvidia's products are under scrutiny to prevent potential military use. In the past, the U.S. government has issued licenses to allow some sales, with varying levels of approval based on national security.

Impact on Nvidia's Sales Forecasts

Nvidia CEO Jensen Huang noted that until recently, the company did not factor in potential revenue from the Chinese market in its projections. Clarifying the situation, the limited number of chips shipped may lead to changes in revenue outlooks if further approvals follow.

Future of AI Chip Imports in China

The uncertainty remains about whether China will approve larger imports of the H200 chips. Without access to Nvidia chips, Chinese companies may have to rely on less capable domestic alternatives, which could hinder their AI advancements. Kessler emphasized that license applications would be evaluated on a case-by-case basis, reflecting ongoing security assessments.