Chipmaking giant Nvidia is reportedly looking to ramp up production capacity for its H200 AI chips to China. A Reuters exclusive, citing two sources, stated that Nvidia was reevaluating its production given that orders exceeded its current levels of output.
This came on the heels of US President Donald Trump telling Nvidia that it could export its H200 processors to China under the condition that it pays 25 per cent of its sales fee to the United States.
The H200 processors are the chipmaker's second-fastest AI chips, according to reports. With growing demand from China, Nvidia is most probably looking to increase its capacity, Reuters reported.
Nvidia, however, responded to the agency exclusive with: "We are managing our supply chain to ensure that licensed sales of the H200 to authorised customers in China will have no impact on our ability to supply customers in the United States."
Earlier reports this week also claimed that Chinese giants like Alibaba and ByteDance reached out to the chipmaker to buy H200 chips in large quantities.
H200 is only second to Nvidia's most advanced Blackwell chips. Its upcoming Rubin processors are also expected to outdo the H200.
"President Xi responded positively" to Trump's decision on the H200, the POTUS stated on social media earlier this week, "This policy will support American Jobs, strengthen US Manufacturing, and benefit American Taxpayers." Trump also stated that the US Commerce Department was finalising the details for other US chipmakers such as AMD and Intel as well.
Nvidia is the poster child of the US AI boom with a market cap of $4.5 billion.
