U.S. trade official says 'very few' Nvidia H200 AI chips have been shipped to China

A senior U.S. trade representative revealed on Tuesday that the number of Nvidia's H200 AI chips dispatched to China and Hong Kong has been minimal. Jeffery Kessler, Under Secretary of Commerce for Industry and Security, made this statement during a congressional hearing, highlighting that the actual shipments of H200s and similar chips were very limited. This announcement suggests that shipments of the H200 may have resumed, potentially leading to an increase in Nvidia's sales. Since last year, the company has excluded any anticipated revenue from Chinese markets in its forecasts. Nvidia's CEO, Jensen Huang, previously advised investors to expect no sales from China during a CNBC interview in May. Nvidia has long aimed to penetrate the Chinese market, one of the largest hubs for AI innovation. However, the company has faced significant hurdles due to ongoing trade tensions between Washington and Beijing, resulting in stringent export restrictions on most of its products. In December, former President Donald Trump indicated that the U.S. government would allow sales of the H200 chip to China, conditional on a 25% revenue cut. Licenses for these chips, which some officials believe could have military applications, have been issued this year, albeit under strict regulations. Kessler noted that the U.S. government evaluates requests for H200 chips on an individual basis, requiring that applicants comply with national security standards and undergo inspections. While Kessler mentioned that some license applications have been denied, it remains uncertain whether China will agree to import substantial quantities of the H200 chips. In their absence, Chinese companies may be compelled to rely on domestic alternatives, which are generally regarded as less effective for training AI models.