The Chinese government has granted preliminary approval for major tech companies to purchase NVIDIA's H200 artificial intelligence chips. This move reopens NVIDIA's access to the Chinese market.
Alibaba, Tencent Holdings, and ByteDance reportedly received the go-ahead to acquire the powerful semiconductors.
This development follows a period of uncertainty caused by U.S. export controls. These controls aim to restrict China’s access to advanced chip technology. The U.S. government had previously permitted NVIDIA to sell the H200 chips to Chinese customers on a case-by-case basis.
NVIDIA’s shares rose 2% in premarket trading following the news. This approval provides a significant potential revenue stream for NVIDIA from one of its largest markets. Beijing is still expected to encourage the use of domestically produced chips.