Nvidia has secured approval from the U.S. government to begin selling its H200 AI chips to select customers in China. This comes at a time when, as we previously reported, chip smuggling has recently raised its ugly head – including alleged instances involving Nvidia’s Blackwell chips. The authorization only pertains to the legacy H200 versions. In parallel, the newer Blackwell chips are still banned from being sold into China.
This updated approval for the H200 AI chips prepares the ground for Nvidia to resume sales with approved clients in the tightly controlled Chinese market. The Blackwell chips have been mired in controversy since their release. Most importantly, we need to emphasize that they are not cleared for sale. According to several independent reports, DeepSeek, a Chinese A.I. model, has been developed using these smuggled Blackwell chips. This lack of specificity poses critical issues around compliance and enforcement in the rapidly growing AI industry.
In a subsequent statement responding to these concerns, an Nvidia spokesman dismissed the smuggling allegations as dubious.
“We haven’t seen any substantiation or received tips of ‘phantom data centers’ constructed to deceive us and our OEM partners, then deconstructed, smuggled, and reconstructed somewhere else. While such smuggling seems far-fetched, we pursue any tip we receive,” – Nvidia spokesperson.
Regardless of these claims, the firm continues to be on guard for symptoms of unauthorized use of its chips. AI technologies are advancing at a breakneck pace. These changes will undoubtedly shape the face of international trade and technology transfer for decades to come.
The approval for the H200 chips marks a significant step for Nvidia as it navigates regulatory frameworks while expanding its influence in the Chinese market. The tech giant’s ability to sell these older models may help solidify its presence in a region that is increasingly investing in artificial intelligence capabilities.
