
President Donald Trump allowed Nvidia to sell its H200 data center GPUs to China last month, but Beijing stepped on the brakes. The central government instructed its tech giants to temporarily halt their orders as it debated how it can provide its AI developers the necessary powerful chips they need to make train their cutting edge models while simultaneously supporting local chip manufacturers.
Now, some sources have told The Information that the Chinese government will only allow the purchase of these chips for “special circumstances,” saying that these are probably limited to university research and development labs only. That restriction is going to be a blow to Nvidia’s dream of making it big in China again, especially after its market share fell to essentially zero from a high of 95% in just a matter of years.