Nvidia is once again at the center of the global artificial intelligence race as demand for its advanced AI chips from China continues to surge. Recent reports indicate that Nvidia has received orders exceeding two million AI chips, highlighting the company’s strategic importance amid escalating technological competition between the United States and China.
According to a report by Reuters, Nvidia’s H200 artificial intelligence chips are expected to enter the Chinese market by mid-February next year. This development strengthens earlier reports suggesting that shipments of the semiconductor devices have officially received approval from U.S. President Donald Trump. The approval marks a significant moment in the ongoing technology and trade dynamics between the world’s two largest economies.
Tens of Thousands of AI Modules Ahead of Lunar New Year
Sources familiar with the matter revealed that approximately 10,000 chip modules, equivalent to as many as 80,000 H200 AI chips, are scheduled to arrive in China ahead of the Lunar New Year celebrations. This timing is considered crucial, as many Chinese technology companies aim to secure advanced computing power before the holiday slowdown.
Another source stated that Nvidia, under the leadership of CEO Jensen Huang, has informed its Chinese clients about plans to expand production capacity specifically for the H200 chip. This move is seen as a response to overwhelming demand from Chinese cloud providers, research institutions, and AI-driven enterprises.
However, Nvidia has not yet provided official confirmation regarding shipment schedules or guaranteed delivery volumes. Sources caution that timelines and quantities could still change depending on regulatory and political developments.
“Everything depends heavily on government agreements. There is no certainty until we receive official support,” a source said, as reported on Monday (December 29, 2025).
Nvidia’s Strategic Role in the Global AI Chip Market
Nvidia remains the world’s most influential supplier of AI chips. Its processors are widely regarded as essential components for training and deploying large-scale artificial intelligence models. As a result, Nvidia products have become highly contested assets in the ongoing technology rivalry between the United States and China.
Despite export controls and licensing requirements, Nvidia continues to navigate regulatory frameworks to maintain access to key international markets. In a statement quoted by Reuters, the company emphasized that licensed sales of H200 chips to authorized Chinese customers would not impact its ability to supply clients in the United States.
This careful balancing act allows Nvidia to protect its global revenue streams while remaining compliant with U.S. government regulations.
Trump’s Approval and Additional Tariffs
In a post on his social media platform Truth Social dated December 9, President Donald Trump stated that he had granted Nvidia Corp permission to export H200 AI chips to China, subject to an additional 25% fee. Trump also noted that he had personally informed Chinese President Xi Jinping about the decision, claiming that Xi responded positively to the arrangement.
The added cost reflects Washington’s broader strategy of maintaining oversight and economic leverage over advanced semiconductor exports, while still allowing American companies to benefit financially from overseas demand.
Implications for the AI Industry
The influx of Nvidia AI chips into China could significantly accelerate AI development across sectors such as cloud computing, autonomous systems, and data analytics. At the same time, it underscores how deeply intertwined geopolitics and technology have become in the AI era.
For Nvidia, China remains a vital market despite increasing scrutiny and regulation. For the global AI ecosystem, this development signals that demand for high-performance AI hardware is far from slowing down.
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