A long and slow approval process is currently preventing deliveries of H200 chips to China, and AMD must also wait.
Two months after Nvidia received the green light from Washington to supply its H200 chips to China, it has not yet been able to ship a single chip. That’s according to the Financial Times. Nvidia is awaiting the outcome of the imposed approval process in order to carry out the first deliveries.
After intensive lobbying by Jensen Huang, the US government suddenly reversed its stance on export restrictions in December. Nvidia was granted permission to also sell its most powerful H200 chips to Chinese customers, whereas until then this was considered a national security risk. The permission came with strict conditions.
For example, every license must be assessed by an independent testing lab, and that is where the problem currently lies for Nvidia. It is still awaiting final approval. Due to the uncertainty, Chinese companies are waiting to place orders and suppliers are waiting to produce components. AMD is also in the queue for its MI350 chips.
Additional conditions
Nvidia was subjected to additional conditions imposed by Washington. China may not receive more than 50 percent of the number of H200 chips sold to American customers. Nvidia must demonstrate that sufficient stock remains available in the US, so that Chinese customers cannot buy up all available supplies.
Chinese customers, in turn, must prove that the chips are not being used for military applications and that their security procedures are correct. They may also not export the chips outside China.
Opportunism
Washington’s change of course stems primarily from a touch of opportunism. Nvidia and AMD must cede a portion of the revenue to the government. When there is something to be gained, it is apparently no longer a threat if Chinese companies get their hands on powerful AI chips.
But the Chinese government is also thinking about its own economy. Beijing, in turn, forbids its companies from buying American chips and instead buying chips of their own soil. Because that is not yet going entirely smoothly, Chinese companies are still eyeing what Nvidia and AMD have to offer.
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