Nvidia disputes allegation it is preparing a custom version of Groq inferencing chip for China [Updated]

by

Nvidia disputes allegation it is preparing a custom version of Groq inferencing chip for China [Updated]

When you purchase through links on our site, we may earn an affiliate commission. Here’s how it works .

Update 3 /19/2026 4:50pm PT : A new report has emerged that Nvidia CEO Jensen Huang said the Reuters story about Groq chips being prepared for shipment to China , which our article below references, is "totally false."

The silicon silk road to China is open once again: Beijing has given full approval for Nvidia to sell its H200 last-generation GPUs in the region. This follows months of back-and-forth talks between the U.S. government, Nvidia, and China, and though the Trump administration approved Nvidia sales , the Chinese government still needed to give the final nod.

You may like Nvidia prepares shipment of 82,000 AI GPUs to China as chip war lines blur How Nvidia's $20 billion Groq 3 LPU deal reshapes the Nvidia Vera Rubin Platform China expected to approve H200 imports in early 2026 Now that it has it, Nvidia is gearing up for a big sales pitch to Chinese companies, Reuters reports , and not just for its H200 GPU. CEO Jensen Huang has said it has already received orders for the H200 chips, but it's arguably the Groq custom AI inferencing hardware that Nvidia is more keen to sell. After making a $14 billion deal with Groq , which develops custom AI ASICs — known as Language Processing Units (LPUs) — Nvidia wants to make a return on its investment. Can the company inject itself into the burgeoning market for Chinese inferencing chips?

With China prioritizing its domestic industry and hesitant to let Nvidia hardware build a monopoly, it didn't seem like H200 could make its way to the region in any significant quantities.

CEO Jensen Huang said earlier this week that Nvidia had received licenses to supply "many customers ​in China" and had received orders from a number of companies. To cater to them, Nvidia was restarting the H200 production line, with Huang himself saying that the "supply chain is getting fired up."

This will be exciting news for Nvidia investors, as Nvidia reportedly didn't include the potential revenue from selling H200 to China in its suggested $1 trillion revenue plan for the company in 2027.

But Nvidia won't make the largest returns on these sales. Although the Trump administration has approved some sales of H200 chips to China, it comes with a 25% revenue share with the U.S. government. Nvidia will have to pay the fee when the chips arrive in the U.S. from their fabrication facilities for approval, before being re-exported.

Nvidia says H200 demand in China is 'very high' as export licenses near completion

Nvidia's $20 billion Groq IP deal bolsters AI market domination

Key considerations

  • Investor positioning can change fast
  • Volatility remains possible near catalysts
  • Macro rates and liquidity can dominate flows

Reference reading

More on this site

Informational only. No financial advice. Do your own research.

Related posts:

  1. With H200s set to flow into China, Groq is reportedly set to follow — Nvidia is allegedly preparing a custom version of inferencing chip to penetrate region
  2. With H200s set to flow into China, Groq is reportedly set to follow — Nvidia is allegedly preparing a custom version of inferencing chip to penetrate region
  3. With H200s set to flow into China, Groq is reportedly set to follow — Nvidia is allegedly preparing a custom version of inferencing chip to penetrate region
  4. With H200s set to flow into China, Groq is reportedly set to follow — Nvidia is allegedly preparing a custom version of inferencing chip to penetrate region

Leave a Comment