Benzinga·2026-01-09 10:41Group 1: Market Reaction - Alibaba Group's stock rose over 5% following reports of potential expanded access to Nvidia's H200 AI chips in China [1] - The stock experienced a slight decline of 2.51% in premarket trading on Friday, settling at $150.59 [6] Group 2: Nvidia's Sales Strategy - Nvidia is tightening its sales approach for H200 chips to China, requiring full upfront payment and rigid terms from Chinese customers [2] - The company is navigating geopolitical tensions while attempting to reopen the Chinese market [2] Group 3: Regulatory Developments - Chinese regulators are preparing to approve limited imports of H200 chips for specific commercial uses, while restricting access for military and sensitive government entities [3] - There are indications that some Chinese tech firms may need to pause orders and consider purchasing domestically made chips alongside Nvidia products [3] Group 4: Alibaba's Interest - Alibaba has expressed interest in ordering over 200,000 units of the H200 chips from Nvidia [4] Group 5: Analyst Insights - Analysts believe that the expected approval for domestic companies to use Nvidia's H200 chips would benefit firms like Alibaba [5] - The H200 chip is considered an older-generation chip that can still be exported to China amid ongoing geopolitical tensions [5] Group 6: Alibaba's AI Investment - Alibaba has become the largest AI spender among Chinese tech companies, with a reliable chip supply likely to bolster its cloud business [6] - The company's stock has surged 92% over the past 12 months, reflecting strong investor confidence in its AI investments and growth, particularly in cloud computing [6]