China's Regulators Give Green Light for DeepSeek's H200 Chip Acquisition from NVIDIA
In a significant move, China's National Development and Reform Commission (NDRC) has granted approval to Chinese tech firm DeepSeek for the purchase of NVIDIA's H200 AI chips. According to Reuters, this decision comes after NVIDIA CEO Jensen Huang visited the country last year, where Beijing agreed to import hundreds of thousands of H200 units in exchange for a 25% tariff on sales.
The deal allows ByteDance, Alibaba, and Tencent - China's three largest tech firms - to acquire a total of 400,000 H200 GPUs. However, it is reported that the Chinese authorities are still finalizing the conditions they're imposing on these companies, which could delay their shipments.
NVIDIA claims it has yet to receive any orders from these firms, with Huang stating that China is still finalizing its licenses. The acquisition of H200 chips by Chinese companies marks a significant shift in the country's approach to AI chip purchases, as it seeks to reduce reliance on local manufacturers such as Huawei and Baidu.
The H200 processor is a more advanced technology compared to NVIDIA's lower-end H20 model, with a power output roughly six times that of its competitor. This move also underscores China's growing interest in acquiring cutting-edge tech from the US, despite ongoing trade tensions between the two nations.
However, the deal has raised concerns among lawmakers and regulators in the US, who are questioning whether NVIDIA is assisting DeepSeek in developing AI models used by the Chinese military. As the regulatory landscape continues to evolve, it remains to be seen how this move will impact US-China relations and the global tech industry.
In a significant move, China's National Development and Reform Commission (NDRC) has granted approval to Chinese tech firm DeepSeek for the purchase of NVIDIA's H200 AI chips. According to Reuters, this decision comes after NVIDIA CEO Jensen Huang visited the country last year, where Beijing agreed to import hundreds of thousands of H200 units in exchange for a 25% tariff on sales.
The deal allows ByteDance, Alibaba, and Tencent - China's three largest tech firms - to acquire a total of 400,000 H200 GPUs. However, it is reported that the Chinese authorities are still finalizing the conditions they're imposing on these companies, which could delay their shipments.
NVIDIA claims it has yet to receive any orders from these firms, with Huang stating that China is still finalizing its licenses. The acquisition of H200 chips by Chinese companies marks a significant shift in the country's approach to AI chip purchases, as it seeks to reduce reliance on local manufacturers such as Huawei and Baidu.
The H200 processor is a more advanced technology compared to NVIDIA's lower-end H20 model, with a power output roughly six times that of its competitor. This move also underscores China's growing interest in acquiring cutting-edge tech from the US, despite ongoing trade tensions between the two nations.
However, the deal has raised concerns among lawmakers and regulators in the US, who are questioning whether NVIDIA is assisting DeepSeek in developing AI models used by the Chinese military. As the regulatory landscape continues to evolve, it remains to be seen how this move will impact US-China relations and the global tech industry.