China has granted approval for AI startup DeepSeek to purchase Nvidia’s H200 artificial intelligence chips, according to sources cited by Reuters. Regulatory conditions for the sales are still being finalized by China’s National Development and Reform Commission (NDRC) and related ministries.
In addition to DeepSeek, Chinese tech giants ByteDance, Alibaba, and Tencent have been approved to purchase more than 400,000 H200 chips in total. Nvidia CEO Jensen Huang said he had not been officially informed of the approvals and noted that China is still finalizing the licenses.
The H200, Nvidia’s second most powerful AI chip, has become a focal point in U.S.-China technology relations. While the U.S. recently cleared exports to China, Beijing retains final authority over shipments. Purchases by DeepSeek could draw attention from U.S. lawmakers; one senior lawmaker alleged that Nvidia had assisted DeepSeek in training AI models later used by the Chinese military.
DeepSeek, known for cost-efficient AI models, is expected to launch its next-generation V4 model with advanced coding capabilities in mid-February. The company did not respond to requests for comment.
The developments come as a House committee prepares to vote on the AI Overwatch Act, which would expand congressional authority to review and potentially block advanced AI chip exports to China and other adversaries, highlighting increasing scrutiny over international AI technology transfers.
