Nvidia, led by CEO Jensen Huang, has run into an unexpected hurdle in China, as customs authorities have blocked shipments of the company’s advanced H200 artificial intelligence (AI) chip. The sudden move has forced suppliers to pause production, creating uncertainty for Chinese tech companies eager to use the processor.
The H200 chip, one of Nvidia’s most powerful AI products, had been cleared for export by the US government, and Huang’s team was preparing to start shipments as early as March. Nvidia had also ramped up component production to meet strong demand from Chinese clients.
However, Chinese customs recently informed logistics agents that the H200 would not be allowed into the country. Officials did not give a reason, leaving the company and its partners uncertain whether the block is temporary or part of a broader policy.
Many components made for the H200 are highly specialised and cannot easily be repurposed, prompting suppliers to halt production to avoid building unsellable inventory. Chinese authorities have also reportedly advised local tech firms to avoid buying the chips unless essential, further dampening demand.
Neither Nvidia nor Chinese officials have publicly commented on the blockage. For Huang and his team, the future of H200 shipments to China remains uncertain as the global AI chip trade faces growing complexity.
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