China has given in-principle approval to leading AI startup DeepSeek to purchase Nvidia’s powerful H200 artificial intelligence chips, according to sources cited by Reuters. The clearance comes with regulatory conditions that are still being finalised, underscoring how sensitive advanced AI hardware remains amid ongoing US–China tech tensions.
What’s Been Approved—and What Hasn’t
Alongside DeepSeek, Chinese tech giants ByteDance, Alibaba, and Tencent have reportedly been allowed to purchase a combined total of more than 400,000 H200 chips. However, the green light isn’t unconditional.
China’s industry and commerce ministries have signed off on the purchases, but the final terms—including usage and compliance requirements—are being determined by the country’s state planner, the National Development and Reform Commission (NDRC). Officials from the relevant ministries have not commented publicly.
Nvidia Responds Cautiously
Speaking to reporters in Taipei, Jensen Huang said Nvidia had not received formal confirmation of DeepSeek’s approval and believes China is still finalising licences. Nvidia declined further comment.
The H200—Nvidia’s second-most powerful AI chip—has become a flashpoint in the geopolitical tug-of-war over advanced computing. While Washington cleared exports of the H200 to China earlier this month, Beijing retains the final say on whether shipments are permitted.
Why DeepSeek Matters
DeepSeek grabbed global attention last year by releasing AI models built at a fraction of the cost of US rivals like OpenAI. The startup is expected to unveil its next-generation V4 model in mid-February, reportedly with strong coding capabilities—making access to top-tier chips especially strategic.
Scrutiny From Washington
Any H200 purchases by DeepSeek are likely to draw attention in the US. A senior US lawmaker recently alleged that Nvidia helped DeepSeek refine AI models later used by China’s military—claims referenced in a letter to the US Commerce Secretary. The allegations add another layer of scrutiny to an already sensitive export channel.
Why This Matters Now
Despite strong demand and US export approval, China’s hesitation has been the main bottleneck to H200 shipments. If conditions are finalised soon, approvals could unlock a significant wave of AI infrastructure spending—while also intensifying political oversight on both sides.
Final Words
China’s conditional approval signals a cautious thaw rather than a full green light. For DeepSeek and other Chinese tech heavyweights, access to Nvidia’s H200 could accelerate AI ambitions. For Washington and Beijing, it’s another high-stakes chapter in the ongoing contest over who controls the future of advanced AI.
