China May Let Alibaba, ByteDance and DeepSeek Buy Limited NVIDIA H200 AI GPUs
China may be preparing to ease its stance on NVIDIA’s AI chips, potentially allowing some of the country’s largest technology companies to purchase restricted quantities of NVIDIA H200 GPUs. The move would mark a notable shift after Beijing previously discouraged domestic firms from buying NVIDIA’s China-focused chips amid rising US-China technology tensions.
The possible policy adjustment comes as Chinese companies continue to face mounting pressure in the artificial intelligence race. US export controls have limited China’s access to advanced semiconductor technology, making it harder for local firms to obtain the high-performance hardware needed to train and run cutting-edge AI models. At the same time, China has been trying to reduce reliance on foreign chips while supporting its own semiconductor ecosystem.
According to a recent report, Chinese authorities are now weighing whether to permit select companies to buy NVIDIA chips in limited volumes. The companies that could receive approval reportedly include Alibaba, ByteDance and DeepSeek, three major players in China’s rapidly expanding AI sector.
The number of chips under consideration is still being discussed. One figure reportedly being evaluated is around 200,000 units, which would be significantly lower than the total amount requested by Chinese firms. If approved, this limited supply could still provide important support for companies building large language models, AI platforms, cloud services and enterprise AI tools.
NVIDIA developed the H200 chip to comply with US export control rules after Washington tightened restrictions on the sale of advanced AI processors to China. However, Beijing responded by pushing local companies to avoid purchasing certain NVIDIA products, reflecting the broader effort to strengthen domestic alternatives and reduce dependence on US technology.
NVIDIA CEO Jensen Huang previously said the company had received approval from China to sell chips to local customers. He also noted earlier this year that NVIDIA had not included China-related chip sales in its financial outlook, suggesting uncertainty remained around how much business the company could realistically expect from the Chinese market.
For NVIDIA, any approval from Beijing could open the door to renewed revenue opportunities in one of the world’s most important AI markets. China’s biggest internet and cloud companies remain hungry for powerful GPUs, especially as they compete to develop advanced AI models and deploy generative AI across consumer and enterprise products.
For Chinese firms, even restricted access to NVIDIA H200 GPUs could help bridge the performance gap while domestic chipmakers continue working to catch up. Although China has made progress in semiconductor development, producing advanced AI accelerators at scale remains a major challenge due to restrictions on chipmaking equipment, design tools and high-end manufacturing processes.
The timing is also important because NVIDIA is already moving beyond its Hopper-generation products. The company’s upcoming Rubin chips are expected to begin shipping later this year, followed by Rubin Ultra GPUs planned for 2027. Some reports suggest certain Rubin Ultra products could face delays until 2028 because of production constraints.
That means the H200, while still powerful, is no longer NVIDIA’s most advanced roadmap product. Even so, for Chinese AI companies operating under export limits, access to these GPUs could be valuable enough to support near-term AI development and reduce pressure caused by limited hardware availability.
The situation highlights the delicate balance China is trying to maintain. On one side, Beijing wants to accelerate domestic AI growth and ensure its leading tech companies remain competitive globally. On the other, it is trying to limit reliance on foreign suppliers and avoid strengthening NVIDIA’s position in the Chinese market.
If China moves forward with a limited approval system, it could create a controlled channel for top AI firms to acquire NVIDIA hardware without fully reversing the government’s broader push for semiconductor self-sufficiency. For Alibaba, ByteDance and DeepSeek, that could mean access to critical computing power at a time when AI competition is intensifying across the world.
For now, the final decision appears to be under review, and the exact number of chips that may be allowed remains uncertain. But even a restricted approval would be closely watched by investors, AI developers and semiconductor industry observers, as it could reshape expectations for NVIDIA’s China business and the future of AI chip access in the region.
