SINGAPORE, Jan 30 (GeokHub) — Chinese authorities have granted conditional approval for leading artificial intelligence startup DeepSeek to purchase Nvidia’s high-end H200 AI chips, according to people familiar with the matter, in a move highlighting Beijing’s careful balancing act amid intensifying U.S.-China tech tensions.
The approval comes with regulatory conditions that are still being finalised, the sources said. Multiple government agencies have signed off on the deal, while China’s state economic planner is determining the final requirements attached to the purchases.
The development follows earlier approvals allowing major Chinese technology firms — including ByteDance, Alibaba and Tencent — to collectively buy hundreds of thousands of Nvidia H200 chips, underscoring strong domestic demand for advanced AI hardware.
Regulatory Conditions Still Under Review
China’s industry, commerce and planning authorities have all approved the purchases in principle, according to sources, but the final conditions are being set by the National Development and Reform Commission (NDRC). Officials from the relevant ministries did not respond to requests for comment.
Nvidia’s chief executive Jensen Huang, speaking in Taipei, said the company had not yet been formally notified of DeepSeek’s approval and believed Chinese regulators were still completing the licensing process.
DeepSeek also declined to comment.
A Sensitive Chip at the Center of Global Tensions
The H200, Nvidia’s second-most powerful AI chip, has become a focal point in geopolitical friction between Washington and Beijing. While the United States earlier this month cleared the export of the chip to China, Beijing retains final authority over whether imports are permitted.
Despite strong appetite among Chinese AI developers, regulatory caution in China has slowed shipments, making domestic approval the key hurdle rather than U.S. export controls.
Scrutiny from Washington Likely
Any acquisition of H200 chips by DeepSeek is expected to attract close scrutiny in the United States. U.S. lawmakers have raised concerns over whether advanced AI technology sold to Chinese firms could have military applications.
Earlier this week, a senior U.S. legislator alleged that Nvidia may have assisted DeepSeek in refining AI systems later used by China’s military, according to correspondence sent to the U.S. Commerce Department. Nvidia has not publicly commented on the allegation.
DeepSeek’s Rising Profile
DeepSeek gained global attention last year after releasing AI models that delivered performance comparable to U.S. competitors at significantly lower development costs. The company is expected to unveil its next-generation V4 model in mid-February, which is reported to feature enhanced coding capabilities.
The outcome of the H200 approval process could play a significant role in shaping DeepSeek’s ability to compete at the cutting edge of AI development.
