China has conditionally approved DeepSeek to purchase Nvidia H200 AI chips, highlighting growing AI demand amid US-China tech tensions
China has granted conditional approval to leading domestic artificial intelligence startup DeepSeek to purchase Nvidia’s advanced H200 AI chips, according to sources familiar with the matter cited by Reuters. The approval comes as Beijing continues to carefully manage the import of high-end semiconductor technology amid intensifying geopolitical scrutiny and rising domestic demand for AI computing power.
The approval is not final and remains subject to regulatory conditions that are still being formulated by Chinese authorities. Sources said these conditions are currently under review by the National Development and Reform Commission (NDRC), China’s top economic planning body, which plays a central role in overseeing strategic technology imports.
In addition to DeepSeek, Chinese technology giants ByteDance, Alibaba, and Tencent have also received permission to purchase Nvidia H200 chips. Collectively, the four companies have been authorized to buy more than 400,000 units of the H200 accelerator, pending final regulatory clearance.
Regulatory Conditions Still Being Finalized
China’s Ministry of Industry and Commerce has approved the applications in principle, but the specific terms attached to the purchases have not yet been publicly disclosed. According to one source, the regulatory framework aims to ensure that imported AI chips are used strictly for approved commercial and research purposes.
Neither the Ministry of Industry and Information Technology, the Ministry of Commerce, nor the NDRC responded to requests for comment. DeepSeek also declined to comment on the approval.
The cautious stance reflects Beijing’s broader strategy of balancing technological advancement with national security concerns, particularly as advanced AI hardware becomes increasingly sensitive in global trade discussions.
Nvidia Awaits Formal Confirmation
Speaking to reporters in Taipei, Nvidia CEO Jensen Huang said the company had not yet received official confirmation of the approvals. He added that, based on his understanding, China was still in the process of finalizing licenses.
Nvidia did not respond to further questions regarding DeepSeek’s approval status. The lack of formal communication highlights ongoing uncertainty for chipmakers navigating export approvals, licensing requirements, and bilateral trade rules.
Earlier this month, the United States government formally cleared Nvidia to sell the H200 chip to China, removing one of the key barriers to exports. However, Chinese authorities retain the final say on whether the shipments are allowed to enter the country.
H200 Chip at the Center of US-China Tensions
The Nvidia H200 is the company’s second-most powerful AI accelerator, designed for training and running large-scale artificial intelligence models. The chip is optimized for workloads involving large language models, advanced data analytics, and scientific computing.
Its importance has made it a focal point in US-China technology tensions, as Washington remains concerned about the potential military or surveillance use of advanced AI hardware. Despite these concerns, demand from Chinese firms has remained strong, driven by rapid growth in domestic AI research and commercial applications.
Even after US export approval, Beijing’s hesitation to authorize imports has been a major bottleneck, delaying shipments and complicating supply chains.
DeepSeek’s Rapid Rise in the AI Sector
DeepSeek emerged as a major player in the global AI industry early last year after releasing AI models that reportedly delivered strong performance at significantly lower development costs than comparable models from US-based companies such as OpenAI.
The company’s approach challenged assumptions about the level of computing resources required to build high-performing AI systems, drawing attention from investors, researchers, and policymakers alike.
Access to Nvidia’s H200 chips would represent a substantial upgrade to DeepSeek’s computing infrastructure, potentially enabling faster model training, improved inference efficiency, and more advanced AI capabilities.
Potential Scrutiny from US Lawmakers
The approval could trigger renewed scrutiny from US lawmakers. A recent Reuters report said a senior US lawmaker accused Nvidia of helping DeepSeek refine AI models that were later used by China’s military.
The allegation was included in a letter sent to US Commerce Secretary Howard Lutnick, raising concerns over the dual-use nature of advanced AI technology. While no official findings have been released, the claims underscore the political sensitivity surrounding AI chip exports.
Nvidia has not publicly addressed the accusation, and there is no confirmation that DeepSeek’s models were used for military purposes.
Strategic Implications for China’s Tech Industry
By granting conditional approval, China appears to be pursuing a middle-ground approach. Allowing limited access to advanced foreign chips supports domestic innovation while maintaining regulatory oversight.
For major firms such as ByteDance, Alibaba, Tencent, and DeepSeek, the ability to acquire H200 chips could accelerate research, improve AI product offerings, and enhance competitiveness against global rivals.
At the same time, regulatory conditions may restrict how and where the chips are deployed, ensuring alignment with national industrial policies.
DeepSeek’s Next AI Model on the Horizon
According to The Information, DeepSeek is expected to launch its next-generation AI model, V4, in mid-February. The model is rumored to feature advanced coding and reasoning capabilities, potentially positioning it as one of the most capable AI systems developed in China.
If DeepSeek secures access to Nvidia’s H200 chips in the coming weeks, the hardware could play a key role in optimizing the performance of the upcoming model.
Outlook
China’s conditional approval for DeepSeek and other major technology firms to purchase Nvidia H200 chips highlights the growing importance of AI hardware in shaping global competitiveness. The decision underscores Beijing’s cautious but pragmatic approach to advanced semiconductor imports amid ongoing US-China tensions.