Nvidia’s $30 Billion China AI Chip Deal Blocked by Beijing Restrictions
China has instructed customs agents to block imports of Nvidia's H200 AI chips and advised domestic tech firms to avoid purchasing the processors unless absolutely necessary. The MOVE creates fresh uncertainty for Nvidia's China business, despite U.S. approval for limited exports of the high-performance chips.
Chinese tech giants including Alibaba, Tencent, and ByteDance had placed orders exceeding 2 million H200 units at $27,000 each—a potential $30 billion revenue opportunity now in jeopardy. Nvidia currently holds only 700,000 chips in inventory, with KeyBanc analysts noting the U.S. government would claim 25% of any China-derived revenue.
The H200 delivers sixfold performance gains over its restricted predecessor, the H20. Market reaction remained muted as Nvidia shares closed up 0.47% at $185.81 following the news, suggesting investors may view the restrictions as temporary rather than structural.
