Nvidia CEO Signals Strong China Demand for New AI Chips
Jensen Huang, speaking at CES, notes 'quite high' interest for H200 GPUs, specifically designed to comply with U.S. export rules, signaling a potential path forward in a critical market.
LAS VEGAS – Nvidia Corp. is already seeing significant interest from China for its new H200 artificial intelligence chips, a product line developed specifically to navigate stringent U.S. export controls, according to Chief Executive Jensen Huang.
Speaking at the CES technology conference, Huang stated that demand from Chinese clients for the new processors is 'quite high'. His comments provide the first public indication of the market's reception for the company's reconfigured chips and suggest Nvidia may have threaded the needle between complying with Washington's restrictions and salvaging its business in its third-largest market.
"Nvidia has been walking a tightrope, trying to retain its significant market share in China while adhering to an evolving set of U.S. trade rules aimed at restricting the country's technological advancement," noted a report from Seeking Alpha. The development of the H200, along with other 'H-series' chips, is a direct response to a U.S. crackdown last October that rendered Nvidia's previous top-of-the-line A800 and H800 chips ineligible for sale in China.
The loss of a major revenue stream was a significant concern for investors, but Huang’s update offers a glimmer of optimism. The CEO indicated that the ultimate test will be purchase orders, which would serve as de facto evidence of approval from Chinese authorities for companies to import the new chips. He also expressed confidence in the company's ability to meet the demand, stating that Nvidia's supply chain is fully prepared to ramp up production.
Nvidia’s business in China, which has previously accounted for more than a fifth of the company’s total revenue, has been a focal point for analysts. The new export controls threatened to cut off a vital growth engine just as the AI boom sends demand for Nvidia's processors soaring globally. The H200 is designed to offer powerful processing capabilities while staying just under the performance thresholds mandated by the U.S. Commerce Department.
As detailed by Yahoo Finance, the situation underscores the delicate balance multinational tech companies must strike amid deepening geopolitical tensions between the U.S. and China. For Nvidia, the ability to continue supplying the Chinese market—home to tech giants like Alibaba and Tencent—is crucial for maintaining its global dominance in the AI hardware space.
The CEO's remarks are the latest chapter in a long-running saga for the semiconductor industry. While the U.S. aims to slow China's progress in military and surveillance applications of AI, it has also inadvertently spurred China's efforts to develop homegrown alternatives to Nvidia's market-leading technology. Huang himself has previously acknowledged that the export controls are likely to accelerate China's own chip-making ambitions.
Now, with the H200, Nvidia is betting that its deep customer relationships and technological superiority—even in a modified form—will be enough to persuade Chinese buyers to choose its products over burgeoning domestic options. The 'quite high' demand mentioned by Huang suggests that, for now, many of China's most important tech firms still see Nvidia as their best option for powering the AI revolution.