Nvidia reportedly weighs ramping up H200 production to meet surging demand in China

Core Insights - Nvidia has successfully lobbied for the approval to sell its H200 chips to China, leading to increased production considerations due to high demand from Chinese companies [1][2][3] Group 1: Approval and Demand - The Biden administration previously restricted the sale of advanced AI chips to China, but the Department of Commerce has now allowed Nvidia to sell H200 GPUs in exchange for a 25% cut of sales [2] - Nvidia is experiencing strong demand from Chinese companies, prompting considerations to expand production capacity for the H200 chips [3] Group 2: Market Dynamics - The expansion of H200 GPU production would enable Nvidia to meet latent demand in China, where there is a push for developing homegrown AI chips amid competition and national security concerns [4] - Major Chinese companies like Alibaba and ByteDance are actively seeking large orders for the H200 chips, which are currently produced in limited quantities [5]