Chinese officials granted in-principle approval for Alibaba, Tencent, and ByteDance to prepare orders for Nvidia's H200 AI chips. This suggests Beijing is close to formally allowing the import of these components, which are essential for advancing artificial intelligence capabilities.
The approval encourages companies to purchase a certain quantity of domestically produced chips. A specific amount has not been set. China uses this move to support its domestic semiconductor industry while allowing tech giants access to high-end foreign technology.
Following the news, originally reported by Bloomberg, Nvidia's shares rose in premarket trading. The decision boosts the AI development efforts of China's largest technology companies by ensuring access to powerful hardware.