There was an article this morning saying that 10,000 units would be shipped to China, and it seems like the news has just come out that 10,000 units have already entered China.
Nvidia (NVDA)'s H200 AI chip has begun to be shipped in small quantities to mainland China, and the Financial Times reported, citing sources familiar with the matter, that ByteDance (BDNCE) and Tencent (TCEHY) each received about 10,000 processors.
According to the report, several other Chinese tech companies are expected to receive export approvals for similar quantities soon.
Under US licenses, Chinese buyers can purchase up to 100,000 H200 chips each. However, Beijing is requiring companies to keep most of these processors outside mainland China in order to support domestic chip manufacturers.
Chinese regulators have also informed companies that they can ship H200 processors to Hong Kong for use there. However, Hong Kong has insufficient data center capacity and power constraints, making it difficult for Chinese companies to deploy large quantities of chips outside mainland China.
"It's a dilemma. Everyone needs the chips, but they are struggling to find ways to use them in Hong Kong," said a source familiar with the situation (said). "We hope that controls will be gradually eased."
Nvidia (NVDA) has about 500,000 H200 chips in stock, mainly intended for Chinese customers, but sales have been delayed due to Beijing's import restrictions. Lenovo (LNVGY) and other Nvidia partners have resumed taking orders for H200-based products in China, but purchases still require approval from the National Development and Reform Commission.
The H200 is at least two or three generations behind Nvidia's (NVDA) highest-performing chips. Sales of the highest-performing chips to Chinese customers remain prohibited due to US export controls. This shipment follows Nvidia's broader push to rebuild its China business.
▶ Source: https://seekingalpha.com/news/4634660-nvidia-h200-shipments-enter-china-tencent-bytedance-get-10000-each---report?utm_content=link-1&position=rta_news_sublogic_pretestlaunch_main_0_title&utm_source=seeking_alpha&utm_campaign=rta-stock-news&messageid=2900&mailingid=47103416&serial=47103416.102349&utm_term=47103416.102349&source=email_2900&utm_medium=email
