After Trump’s approval, ByteDance and Alibaba are interested in purchasing Nvidia processors

Following US President Donald Trump’s announcement that he would permit its export to China, ByteDance and Alibaba have approached Nvidia about buying its potent H200 AI processor, four individuals familiar with the situation told Reuters.

According to two of the people, if Beijing grants the go-ahead, Chinese enterprises would like to place sizable orders for Nvidia’s second-most potent AI processor. One of them noted that they are still worried about supplies and want Nvidia to be more transparent.

The most sophisticated AI semiconductor that could be lawfully sold to China was the H20. Before to Trump’s decision to permit the sale of Nvidia’s Taiwan-made H200. The power of the H200 is about six times greater.

Trump’s declaration about the H200 has not yet received a firm response from the Chinese government. According to Reuters, it prohibited Chinese tech businesses and government-funded data centers from purchasing AI chips from Nvidia in recent months. Significantly decreasing Nvidia’s market position in China.

Chinese officials called executives of firms like Alibaba, ByteDance, and Tencent Holdings and asked them to evaluate their need for H200. According to a report published in The Information on Wednesday.

Due to the US chip giant’s concentration on its more sophisticated Blackwell and Rubin lines. Which are set to be released, relatively few H200 chips are currently being made.

Because H200’s capacity to train AI models—which are more suited for inference—is unparalleled in the home market, Chinese businesses are drawn to it.

According to a Reuters analysis of over 100 tenders and scholarly articles, elite Chinese colleges, data center firms, and organizations connected to the Chinese military have also tried to purchase H200 chips via the black market.