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China gives conditional nod for DeepSeek to buy Nvidia H200 AI chips

Chinese authorities have granted conditional approval to leading artificial intelligence startup DeepSeek to purchase Nvidia’s H200 chips, according to two people familiar with the matter, marking a potential breakthrough in the tightly regulated flow of advanced U.S. semiconductors into China.

The approval is subject to regulatory conditions that are still being finalised, the sources said. China’s Ministry of Industry and Information Technology and Ministry of Commerce have cleared the purchase in principle, while the final terms are being determined by the country’s top economic planner, the National Development and Reform Commission (NDRC).

The development follows reports earlier this week that major Chinese technology firms including ByteDance, Alibaba and Tencent had also received approval to buy a combined total of more than 400,000 H200 chips, Nvidia’s second-most powerful artificial intelligence processor.

Regulatory Conditions Still Under Review

While the approvals signal Beijing’s cautious willingness to allow imports of the high-end chips, the conditions attached could influence the timing and scale of shipments. Chinese regulators have the final authority over whether the chips can be delivered, despite Washington recently clearing exports of the H200 to China.

Nvidia Chief Executive Jensen Huang told reporters in Taipei on Thursday that the company had not yet received formal confirmation of the approvals, adding that he believed China was still in the process of finalising licences. Nvidia declined to comment further, while China’s relevant ministries did not respond to requests for comment.

DeepSeek also did not respond to inquiries. The startup drew global attention last year after unveiling AI models that reportedly matched the performance of U.S. competitors at a fraction of the development cost.

Geopolitical Scrutiny Intensifies

The H200 chip has become a sensitive issue in U.S.–China technology relations, as demand from Chinese companies has surged even as regulatory hurdles persist. Beijing’s reluctance to approve imports has been a key bottleneck, despite strong market appetite.

Any purchases by DeepSeek could face scrutiny in Washington. A senior U.S. lawmaker recently alleged that Nvidia had assisted DeepSeek in refining AI models that were later used by China’s military, according to correspondence sent to the U.S. Commerce Secretary. Nvidia has not publicly responded to the allegation.

DeepSeek is expected to launch its next-generation AI model, known as V4, in mid-February, according to a recent media report. The model is said to feature enhanced coding capabilities, potentially increasing the company’s demand for advanced computing power.

The conditional approval highlights the delicate balance China is attempting to strike between advancing its domestic AI ambitions and managing geopolitical risks tied to foreign semiconductor technology.