The Tamesis
Nvidia’s long-delayed plan to sell its second-best artificial intelligence chip, the H200, to China now faces another hurdle, this time due to delays in U.S. officials’ review of the license application.
The U.S. Commerce Department relaxed export restrictions on China’s H200 in January but asked the U.S. Departments of State, Defense and Energy to review license applications, the Financial Times reported, citing people familiar with the matter.
According to the Financial TimesThe Commerce Department has completed its analysis, but the State Department has been pushing for tighter restrictions to make it more difficult for China to use the H200 chips in a way that could harm U.S. national security.
The Financial Times quoted a source as saying that the State Department’s stance “frustrates Nvidia.”
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The report also said there are concerns about whether Chinese companies can ensure that the chips they buy will not be used to advance military development.
Chris McGuire, a former State Department export control expert, told the Financial Times: “If the State Department has concerns about the national security implications of approving these licenses, that would indicate that there are indeed significant risks associated with these licenses.”
According to the Financial Times, during the delay, Chinese customers will not place H200 chip orders with Nvidia until it is clear whether they can obtain a license or what conditions are attached.
Reuters could not immediately verify the report. Nvidia and the U.S. State Department did not immediately respond to Reuters requests for comment outside regular business hours.
multiple delays
The review marks another delay for Nvidia as it looks to return to China $50 billion annual artificial intelligence market This comes after Beijing recently imposed a ban on its chips.
However, last month, Beijing approved the first batch The launch of Nvidia’s H200 artificial intelligence chip marks a change in status.
People familiar with the matter told Reuters that the Chinese government had only given conditional approval and was still making a decision. The licenses are also very stringent and customers have yet to convert approvals into purchase orders, they said.
Nvidia CEO Jensen Huang said last week that he hopes China will allow the U.S. tech giant to sell its powerful H200 artificial intelligence chip there, and that a license is being finalized.
Meanwhile, Nvidia has asked its Chinese customers Full advance payment for their orders.
The U.S. chipmaker has implemented unusually strict terms, requiring orders to be paid in full and not being able to cancel, request refunds or change configurations after orders are placed.
- Reuters, with additional editing and input by Vishakha Saxena
See also:
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Nvidia requires Chinese buyers to pay upfront for H200 chips
China now requires chipmakers to use at least 50% domestic equipment
U.S. delays new chip tariffs on China to keep peace
China’s big technological secret: Dutch chip-making machine replicated in laboratory
China actively lobbies for Nvidia H200, but local chips remain key
Nvidia’s biggest Chinese buyer can no longer use its chips for artificial intelligence
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Chinese AI firms form alliance with chipmakers to ditch foreign technology
