China Gives Conditional Nod for DeepSeek to Buy Nvidia H200 AI Chips

China has given conditional approval to leading artificial intelligence startup DeepSeek to purchase Nvidia’s advanced H200 AI chips, according to people familiar with the matter. The approval has been granted by China’s key industry and commerce authorities, but the final conditions attached to the purchase are still being worked out.

These conditions are being reviewed by China’s top economic planning body, the National Development and Reform Commission. The move comes amid growing demand for high-end AI chips from major Chinese technology firms, as they race to build more powerful AI models. Earlier reports suggested that companies such as ByteDance, Alibaba and Tencent had also received clearance to buy large volumes of the same chips, though Nvidia has said it has not yet received official confirmation.

The H200 chip, Nvidia’s second most powerful AI processor, sits at the centre of ongoing technology tensions between the United States and China. While Washington recently cleared exports of the H200 to China, Beijing still has the final authority to decide whether such shipments can enter the country.

DeepSeek gained global attention last year after launching low-cost AI models that challenged more expensive offerings from US rivals. Any purchase of advanced chips by the company is likely to attract attention from US lawmakers, especially amid concerns over potential military use of AI technologies.

DeepSeek is also expected to release its next-generation AI model, V4, in the coming weeks, with a strong focus on coding and advanced capabilities.

Source: The Economic Times