Nvidia readies H200 chips for China delivery by February

Nvidia has informed its Chinese clients that it aims to begin shipping its second-most powerful AI chips, the H200, to China before the Lunar New Year in mid-February, three sources familiar with the matter told Reuters.

The U.S. chipmaker plans to fulfill initial orders from existing stock, with shipments expected to total 5,000 to 10,000 chip modules equivalent to roughly 40,000 to 80,000 H200 AI chips, according to two of the sources. Nvidia also indicated that new production capacity for these chips will open for orders in the second quarter of 2026, a third source said.

However, significant uncertainty remains, as Beijing has yet to approve any H200 purchases, and the timeline could change depending on government decisions. “The whole plan is contingent on government approval. Nothing is certain until we get the official go-ahead,” the source added.

The planned shipments would mark the first deliveries of H200 chips to China following U.S. President Donald Trump’s recent decision to allow such sales with a 25% fee. This represents a major policy shift from the Biden administration, which had previously banned advanced AI chip exports to China citing national security concerns.

The 25% fee raises the effective price of H200 chips, making them less competitive in cost-sensitive segments but still dominant in performance. For high-end AI applications, H200 is likely to remain the preferred choice, but the fee may encourage greater adoption of domestic chips in mid- and low-tier markets.

The H200, part of Nvidia’s previous-generation Hopper line, remains widely used in AI despite being succeeded by the newer Blackwell chips. With production focused on Blackwell and the upcoming Rubin line, H200 supply has been limited.

China, meanwhile, is pushing to develop its domestic AI chip industry. Local firms have yet to match the H200’s performance, raising concerns that imports could slow domestic progress. Chinese officials reportedly held emergency meetings earlier this month to discuss whether to approve shipments. One proposal under consideration would require each H200 purchase to be bundled with a set ratio of domestic chips.

For Chinese technology giants such as Alibaba Group and ByteDance, which have expressed interest in acquiring H200 chips, the potential shipments could provide access to processors roughly six times more powerful than Nvidia’s H20, a downgraded chip designed specifically for the Chinese market.

Nvidia and China’s Ministry of Industry and Information Technology did not immediately respond to requests for comment.