Huang says Nvidia seeing ‘very high’ Chinese customer demand for H200 AI chips

Nvidia's CEO, Jensen Huang, announced on Tuesday that the company is experiencing a significant surge in demand for its H200 AI chips from customers in China. This comes after the U.S. government indicated that it would approve the export of these chips. Huang confirmed that production of the H200 chips has resumed, and Nvidia is finalizing export license details with U.S. authorities. These chips play a crucial role for companies engaged in developing artificial intelligence models. "We've revitalized our supply chain, and H200s are now actively being produced," Huang stated during a press conference held at the CES event in Las Vegas. Investors are keenly eyeing the Chinese market, viewing it as a substantial opportunity as local tech firms advance their AI initiatives. Huang has previously estimated that this market could generate up to $50 billion annually, a figure that is currently not reflected in Nvidia's forecasts. In December, former President Donald Trump mentioned that Nvidia could export its H200 chips to China, contingent upon the company paying a 25% tax on those sales to the U.S. government. Although the H200 model is a generation or two behind Nvidia's latest offerings, it differs from earlier chips that were purposefully restricted for export compliance. Import approval from China is also necessary for Nvidia's chips. Huang noted that he does not anticipate any formal announcements regarding import approvals from China, indicating that Nvidia would gauge regulatory status as purchase orders are received. "We don't expect any major press releases or official declarations," he remarked. "It's going to be all about the purchase orders." Moreover, Huang emphasized that any sales of the H200 chips would contribute to the company's previously stated two-year forecast of $500 billion. "It looks like we're set to re-enter the Chinese market," he concluded.