NVIDIA finds itself at the center of a booming demand for its previous generation Hopper H200 AI GPUs in China. The recent easing of US restrictions has sparked a surge of interest, underscoring the strategic significance of these GPUs in the AI sector. This development could signal a shift in the technological landscape, as companies scramble to secure these crucial components.
Surging Demand for NVIDIA Hopper H200 AI GPUs
Reports suggest a dramatic increase in the demand for NVIDIA’s H200 AI GPUs in China. Following the US Government’s decision to allow the sale of older Hopper-based GPUs, attention has turned to these components, despite the ongoing ban on newer products like Blackwell and Blackwell Ultra. Sources indicate that NVIDIA must pay 25% of each sale to the US, a factor that could influence pricing strategies in the Chinese market. The unexpected popularity of the H200 GPUs has prompted NVIDIA to consider expanding production capacity through its partners, ensuring a steady supply to meet the demand.
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 authorized customers in China will have no impact on our ability to supply customers in the United States,” an Nvidia spokesperson said in a statement to Reuters after the story was published.
This increased production is expected to stabilize the supply chain, minimizing any disruptions for US customers. Additionally, NVIDIA is intensifying the production of its Blackwell Ultra GPUs, with the Rubin series scheduled to begin manufacturing next year. 
Awaiting China’s Market Decisions
While interest is high, the actual sale of NVIDIA’s H200 AI GPUs in China remains pending official approval. Upcoming meetings among Chinese authorities are expected to decide the fate of these GPUs in the domestic market. Even though the H200 is not as advanced as the Blackwell, its robust software suite and optimizations make it highly attractive, especially for sectors without access to the latest-generation chips. The GPU’s competitive edge lies in its ability to deliver significant AI performance enhancements, maintaining its relevance in a rapidly evolving tech environment.