China has conditionally approved its leading artificial intelligence startup DeepSeek to purchase Nvidia’s H200 AI chips, according to two sources familiar with the matter who spoke to Reuters. The regulatory approval includes conditions that are still being finalized by Chinese authorities.
Earlier this week, Reuters reported that major Chinese technology groups ByteDance, Alibaba, and Tencent had also received permission to buy more than 400,000 H200 chips combined.
Speaking to reporters in Taipei on Thursday, Nvidia Chief Executive Jensen Huang said the company had not been formally informed of DeepSeek’s approval. He added that he believed Chinese authorities were still finalizing the relevant licensing process. Nvidia did not respond to requests for comment regarding DeepSeek’s case.
According to the sources, China’s industry and commerce ministries have granted approvals for all four companies but attached conditions that remain under review. These requirements are being determined by China’s state planner, the National Development and Reform Commission. Requests for comment sent to China’s Ministry of Industry and Information Technology, Ministry of Commerce, and the NDRC went unanswered.
DeepSeek gained global attention early last year after releasing AI models developed at a fraction of the cost of those created by U.S. competitors such as OpenAI. The company did not respond to a request for comment on the reported approval.
Nvidia’s H200, its second most powerful AI chip, has become a key point of tension in U.S.-China technology relations. While demand from Chinese companies remains strong and U.S. authorities have approved exports, hesitation from Beijing has so far been the main obstacle preventing large-scale shipments.
Earlier this month, the United States formally cleared Nvidia to sell the H200 to China. However, Chinese regulators retain the final authority over whether the chips can be imported and distributed domestically.
Any purchase of H200 chips by DeepSeek could also attract scrutiny from U.S. lawmakers. Reuters reported that a senior U.S. legislator alleged Nvidia had assisted DeepSeek in refining AI models that were later used by the Chinese military, citing a letter sent to U.S. Commerce Secretary Howard Lutnick.
Meanwhile, DeepSeek is expected to unveil its next-generation AI model, V4, in mid-February. According to The Information, the upcoming release will feature enhanced coding capabilities and is seen as a major step forward for the company.
