China Grants Conditional Approval For DeepSeek To Buy Nvidia H200 Chips
China has granted its leading artificial intelligence startup DeepSeek approval to purchase Nvidia’s H200 artificial intelligence chips, although the regulatory conditions attached to the deal are still being finalised, two people familiar with the matter told Reuters. The approval places DeepSeek alongside several of China’s largest technology groups that have recently received similar clearance.
Earlier this week, Reuters reported that ByteDance, Alibaba and Tencent had been given permission to buy more than 400,000 H200 chips combined. The latest approval suggests Chinese authorities are cautiously opening the door to wider use of the advanced processors.
Regulatory Conditions Still Under Review
Although approvals have been granted, Chinese regulators have attached conditions that remain under discussion, according to the sources. China’s industry and commerce ministries approved the purchases in principle. However, the final terms are being set by the country’s state planner, the National Development and Reform Commission.
China’s Ministry of Industry and Information Technology, Ministry of Commerce and the state planner did not respond to requests for comment. DeepSeek also declined to comment on the approval.
Nvidia Seeks Clarity On Licensing
Nvidia has yet to confirm that it has received formal notification regarding DeepSeek. Speaking to reporters in Taipei on Thursday, Nvidia Chief Executive Jensen Huang said the company had not been informed of any such decision and believed China was still finalising the licence. Nvidia did not respond to a separate request for comment on the approval.
The H200 is Nvidia’s second most powerful artificial intelligence chip and has become a sensitive issue in relations between Washington and Beijing. While demand from Chinese companies has been strong and the United States has approved exports, hesitation from Chinese authorities has so far slowed shipments.
Geopolitical Sensitivities Surround The Chips
Earlier this month, the United States formally cleared the way for Nvidia to sell the H200 to China. Even so, Chinese regulators retain the final say on whether imports can proceed. As a result, approvals have been closely watched by both industry and policymakers.
Any purchase by DeepSeek could attract scrutiny in Washington. Reuters reported that a senior United States lawmaker alleged Nvidia had helped DeepSeek refine artificial intelligence models later used by the Chinese military. The allegation appeared in a letter sent to US Commerce Secretary Howard Lutnick.
DeepSeek Prepares New AI Model
DeepSeek gained global attention early last year after launching artificial intelligence models that reportedly cost far less to develop than those of US rivals such as OpenAI. The company is expected to release its next generation AI model, known as V4, in mid February. According to The Information, the model is set to feature strong coding capabilities.
Overall, the conditional approval highlights how advanced AI hardware remains tightly controlled, even as demand accelerates across China’s technology sector.
With inputs from Reuters
