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China gives nod to ByteDance, Alibaba and Tencent to buy Nvidia’s H200 chips

China has given the green light to three of its largest tech companies to buy Nvidia’s (NVDA.O), opens new tab H200 artificial intelligence chips, four people familiar with the matter told Reuters, marking a shift in position as Beijing seeks to balance its AI needs against spurring domestic development.
ByteDance, Alibaba (9988.HK), opens new tab, and Tencent (0700.HK), opens new tab, have been approved to purchase more than 400,000 H200 chips in total, with other firms now joining a queue for subsequent approvals, the sources said, speaking on condition of anonymity.
The Chinese government is only granting approvals with conditions, and the sources said they were still being decided upon.
A fifth source said that the licenses were too restrictive and customers were not yet converting the approvals to purchase orders.
The regulatory nods were granted during Nvidia (NVDA.O), opens new tab Chief Executive Jensen Huang’s visit to China this week, one of the sources said.
China’s industry and commerce ministries, as well as Nvidia, had not yet responded to requests for comment at the time of publication. ByteDance, Alibaba, and Tencent had not responded either.
Chinese government officials have told domestic technology companies in previous meetings that they should only purchase chips when necessary, Reuters has reported.

Source: Reuters

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