Nvidia CEO Jensen Huang announced on Tuesday that the company is experiencing “very high” customer demand in China for its H200 AI chips, following recent signals from the U.S. government indicating potential approval for export.
Huang confirmed that Nvidia has reactivated its supply chain and is in the process of finalizing export license details with U.S. authorities. The company’s advanced chip technology is a cornerstone for organizations developing cutting-edge artificial intelligence models.
“We’ve fired up our supply chain, and H200s are flowing through the line,” Huang stated during a press conference at CES in Las Vegas.
The Chinese market represents a significant growth avenue for Nvidia, as its technology companies accelerate their AI model development. Huang has previously estimated this market’s potential annual value at $50 billion, a figure not currently factored into Nvidia’s existing financial forecasts.
In December, there were indications that the U.S. government might permit Nvidia to export its H200 chips to China, provided the company contributes 25% of the sales revenue to the U.S. treasury. While the H200 is a generation or two behind Nvidia’s most advanced offerings, it differs from previously restricted chips in that it has not been deliberately de-specced to meet export limitations.
However, Chinese regulatory approval for the import of these chips remains a crucial step. Huang expressed that he does not anticipate a formal announcement from China regarding import approval, suggesting that Nvidia will likely gauge the regulatory climate through incoming purchase orders.
“We’re not expecting any press releases, or any large declarations,” Huang commented. “It’s just going to be purchase orders.”
He further elaborated that any sales of the H200 in China would be incremental to Nvidia’s previously issued $500 billion two-year forecast.
“It appears that we’re going to be going back to China,” Huang concluded.
This development underscores the complex geopolitical landscape surrounding advanced technology exports, particularly in the rapidly evolving field of artificial intelligence. Nvidia’s strategic positioning as a key supplier of AI hardware places it at the center of these international trade dynamics. The ability to access the vast Chinese market, even with restrictions, could significantly impact Nvidia’s revenue streams and solidify its dominance in the global AI chip industry. The company’s proactive approach in restarting production and navigating regulatory channels highlights its commitment to diversifying revenue sources and capitalizing on global AI adoption.
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