Nvidia (NVDA) has informed Chinese customers that it is considering expanding production of its high-performance H200 AI chips after demand surpassed current supply, Reuters reported, citing two sources.
Earlier this week U.S. President Donald Trump said that the administration will allow Nvidia to export the powerful H200 AI processor to China, with a 25% fee on sales.
Supply of H200 chips has been limited, while companies such as Alibaba (BABA) and ByteDance (BDNCE) have expressed interest in buying them, Reuters said. The chip is made by Taiwan Semiconductor Manufacturing Co. (TSM).
Meanwhile, China is pushing its own domestic AI chip industry. The government has not yet approved any H200 purchases. Officials held emergency meetings on Wednesday to assess the situation and will decide whether to permit the chip’s import, Reuters reported citing two of the sources and a third person familiar with the discussions.