Chinese tech companies have placed orders for over 2 million Nvidia H200 graphics processing units (GPUs), a surge from just last week’s reported 40,000 too 80,000, as a recent sales ban lifted. But can Nvidia actually deliver?
Chip Demand Soars as Restrictions Ease
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Reuters reports a massive jump in orders for Nvidia’s H200 GPUs in china following the lifting of sales restrictions. Chinese companies have ordered more than 2 million H200 chips.
- Demand for Nvidia’s H200 GPUs in China has exploded following the lifting of sales restrictions.
- Chinese companies have ordered more than 2 million H200 chips.
- nvidia is reportedly seeking to increase production through TSMC.
- The H200 remains the most powerful GPU Nvidia can currently sell in China.
According to sources familiar with the matter, Chinese firms are scrambling to secure as many H200s as possible. Nvidia, however, currently has only around 700,000 of the two-year-old AI accelerators in stock and has reportedly reached out to taiwan Semiconductor Manufacturing Company (TSMC) to ramp up production.The H200 utilizes TSMC’s 4N process, an older technology compared to the 4NP process used in Nvidia’s higher-performance Blackwell GPUs, which remain unavailable in China.
Nvidia stated it dose not anticipate H200 sales to China impacting chip supplies for US customers.
“Offering the H200 to approved commercial customers, vetted by the Department of Commerce, strikes a thoughtful balance,” a company spokesperson told The Register and other outlets. “China is a highly competitive market with rapidly growing local chip suppliers. Blocking all U.S. exports undercut our national and economic security and only benefited foreign competition.”
A Pricey Proposition
Shipments of the H200s are expected to begin in the second half of 2026, with 8-GPU systems priced around 1.5 million yuan (approximately $215,000).
The H200 is currently the most powerful GPU nvidia is permitted to sell in China.Earlier this month, the Trump administration reversed Biden-era export controls, allowing H200 shipments in exchange for Nvidia sharing 25 percent of the revenue with the US government, as reported by sources.
ByteDance,the parent company of tiktok,is reportedly among the Chinese hyperscalers vying for the chips. The South China Morning Post indicates ByteDance plans to purchase roughly $14 billion worth of H200s.
Geopolitical Hurdles Remain
Despite US approval, the delivery of these chips to mainland China isn’t guaranteed. Beijing has been urging hyperscalers to move away from Nvidia and embrace domestic alternatives in response to US trade policies. Furthermore, Chinese authorities have moved to prohibit state-funded datacenters from utilizing foreign AI chips, citing concerns about potential backdoors or remote kill switches-allegations Nvidia has strongly denied.
