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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.
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?
You may like Nvidia prepares shipment of 82,000 AI GPUs to China as chip war lines blur China expected to approve H200 imports in early 2026 Nvidia says H200 demand in China is 'very high' as export licenses near completion 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.
But H200 isn't the only new(ish) hardware that Nvidia will use to improve its market position in China. The company is also adapting its Groq custom inferencing chips for the market, too.
Groq is the name of the AI inferencing hardware company Nvidia acquired in late-2025 — not to be confused with Elon Musk and xAI's Grok. Technically, Nvidia just acquired a license to use the Groq technology and hired on all its top staff, but that's an acquisition in every way but name, and it conveniently gets around any anti-trust investigations or regulatory approval.
Jensen says Nvidia has received orders from Chinese customers for H200 GPUs, licenses from US gov't — H200 manufacturing restarting
Beijing reportedly limiting H200 purchases to those with ‘special circumstances’
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
- https://www.tomshardware.com/tech-industry/SPONSORED_LINK_URL
- https://www.tomshardware.com/tech-industry/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#main
- https://www.tomshardware.com
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Informational only. No financial advice. Do your own research.