NVIDIA returns to China. Hundreds of thousands of chips will flood the market
Accelerators NVIDIA H200 may soon reach China’s largest technology giants. The recipients include companies such as: DeepSeek, ByteDance, Alibaba and Tencent. The first wave of orders is expected to exceed 400 thousand systemsand the total demand of Chinese technology companies is estimated at up to about 2 million chips. This shows that despite several years in the making in architecture Hopperthe demand for Green solutions remains huge.
Chinese AI equipment still has a long backlog
However, the road to this point was bumpy. A few months ago, NVIDIA got the go-ahead Donald Trump’s administration to sell the H200 to China, agreeing to a profit-sharing model. However, after this decision, Beijing adopted a much tougher stance, delaying licensing and regulatory procedures. Now the situation is apparently starting to change, although the Chinese authorities are considering imposing additional conditions on companies that will receive access to American AI accelerators.
This is a clear turnaround, especially considering it happened recently Jensen Huang openly admitted that NVIDIA’s share in the Chinese AI market had dropped to virtually zero, and the company stopped taking China into account in its revenue forecasts. However, a series of visits and talks conducted by the CEO were intended to gradually overcome the regulators’ reluctance and soften the narrative of a tough line towards the US. According to Reuters sources, Huang’s recent visit to China was a key push that could open the door to the H200.
If deliveries actually start, Chinese researchers and AI server rooms will gain access to computing power that they have lacked for many months. Domestic alternatives, including solutions from leading companies like Huawei or Cambriconfailed to convince the Chinese giants. Their supply is low, their computing power is lower, and their power consumption is higher. Everyone still prefers NVIDIA and their CUDA ecosystem.
