Nvidia could boost H200 chip output due to China demand

Nvidia has told Chinese clients it is evaluating adding production capacity for its powerful H200 AI chips after orders exceeded its current output level, according to two sources briefed on the matter.

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The move comes after US President Donald Trump said last Tuesday the US government would allow Nvidia to export H200 processors, its second-fastest AI chips, to China and collect a 25% fee on such sales.

Demand for the chip from Chinese companies is so strong that Nvidia is leaning toward adding new capacity, one of the sources said. They declined to be named as the discussions are private.

“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,’ an Nvidia spokesperson said ina statement to Reuters after the story was published.

Major Chinese companies including Alibaba and ByteDance have already reached out to Nvidia this week about purchasing the H200 and are keen to place large orders, Reuters reported on Wednesday.