Nvidia Faces De Facto H200 Ban in China as Domestic AI Alternatives Gain Traction

Chinese customs authorities have effectively blocked imports of Nvidia's H200 AI server chips, according to industry sources. The restriction, described as a de facto ban despite lacking official documentation, has prompted domestic tech firms to avoid purchasing the advanced chips unless absolutely necessary. Nvidia shares (NVDA) rose nearly 1% following the reports.

Huawei's Ascend chips are emerging as viable alternatives, with shipments projected to jump 59% from 507,000 units in 2024 to 805,000 next year. The 910C variant now delivers ~60% of the inference performance of Nvidia's H100, signaling China's accelerating push for semiconductor self-sufficiency.

Open-source tools like CANN and CUDA-to-SYCL are enabling Chinese firms to migrate AI workloads to domestic hardware. This shift comes as US export controls continue reshaping global tech supply chains, with Beijing prioritizing homegrown solutions for critical infrastructure.