NVIDIA H200 AI GPU Approved for China Sales Despite Zero Revenue Expectations

NVIDIA secured US export approval to sell its H200 AI GPUs to customers in China. The company expects zero revenue from these sales despite the regulatory clearance. CFO Collette Kress stated that NVIDIA has yet to generate any income from this approved channel. She also noted uncertainty about whether the United States will allow actual imports into the country.

CFO Collette Kress stated NVIDIA expects no income from the approved channel while remaining uncertain about future imports.

NVIDIA CEO Jensen Huang confirmed that the company has evacuated the Chinese market for AI chips. Local firms like Huawei are performing well in the absence of American competition. Estimates suggest US AI chips remain roughly five times more powerful than Huawei's current products. Even if Huawei produces two million units by 2026, its total computing power would only reach four percent of NVIDIA's output.

Reports indicate that some growth for Huawei stems from government pressure rather than pure market demand. This dynamic shapes the competitive landscape as local players fill the void left by NVIDIA. The company maintains its position in supporting US dominance in advanced chip technology.

NVIDIA remains uncertain about future import approvals for H200 units destined for China. The CFO highlighted this uncertainty during a recent earnings call. Huawei's expansion continues amid these shifting regulatory conditions and market dynamics.