The US cleared Nvidia H200 chip sales to 10 Chinese firms on May 14, 2026. The approval reverses a ban that had reduced Nvidia's China market share to zero, per CEO Jensen Huang.
Key facts
- US cleared H200 sales to 10 China firms on May 14, 2026.
- Nvidia's China market share was zero per Jensen Huang on May 3.
- H200 offers 4.8 TB/s memory bandwidth vs H100's 3.35 TB/s.
- Nvidia's Blackwell successor Vera Rubin ships later this year.
- H200 lacks Blackwell's transformer engine and FP4 support.
The US government approved Nvidia to sell its H200 chips to 10 Chinese firms on May 14, 2026, according to Reuters. The H200 is a less powerful variant of Nvidia's flagship Blackwell architecture, designed to comply with export controls while still serving China's AI training demand.
How the ban hollowed out Nvidia's China business
The approval marks a sharp pivot. Just 11 days prior, on May 3, 2026, Nvidia CEO Jensen Huang stated that US export controls had reduced the company's China market share to zero [Reuters reports]. Nvidia's China revenue was effectively zero before this clearance. The 10 firms — which Reuters did not name — are likely hyperscalers and AI labs that previously purchased Nvidia's H100 and H800 chips before stricter export curbs took effect.
What the H200 clearance means for Nvidia and competitors
The H200 is a memory-bandwidth upgrade of the H100, not a new architecture. It offers 4.8 TB/s bandwidth versus H100's 3.35 TB/s, but lacks Blackwell's transformer engine and FP4 support. This clearance lets Nvidia recapture some China revenue without exposing its most advanced IP. The move also pressures competitors like Huawei's Ascend 910B and AMD's MI300X, which had gained share in China's AI chip market during Nvidia's absence.
One unique take
The clearance is less a policy shift than a calibrated leak: the US is allowing Nvidia to sell mid-tier silicon to keep the company's China engineering teams funded and prevent Huawei from owning the entire inference stack. The H200 is obsolete by Nvidia's own roadmap — Vera Rubin ships later this year — so selling it to China now poses minimal national security risk while generating billions in revenue.
What to watch
Watch for the Q3 2026 Nvidia earnings call: if China revenue exceeds 5% of total revenue, the clearance is material. Also monitor Huawei's Ascend 910B pricing — a price cut would signal competitive response. The US Commerce Department's next entity list update, expected within 60 days, will reveal if more firms are added or if the H200 clearance expands.
