By Danny Vena, CPA
Publication Date: 2026-01-24 09:05:00
This could be a major catalyst for the AI chipmaker.
The past year has been fraught with uncertainty for Nvidia (NVDA +1.60%). The company has played a crucial role in the AI revolution, as its graphics processing units (GPUs) became the AI chip of choice, underpinning these technological advances. Subsequent restrictions on the sale of these processors to customers in China — which is one of Nvidia’s biggest markets — cast a pall over the company’s otherwise exemplary results. Reports suggest the standoff may finally be over.
Chinese regulators have reportedly instructed some of the country’s biggest technology purveyors to submit orders for Nvidia’s H200 AI chips for approval, according to a report by Bloomberg, citing “people familiar with the situation.” This could mark a turning point for Nvidia, which had previously been shut out of this lucrative market.
Image source: Nvidia.
These well-known Chinese companies, including Alibaba, Tencent, and former TikTok parent ByteDance, have been told they will be required to buy a certain percentage of domestic chips as part of the conditional approval, according to the report.
Previous reports suggested that Chinese regulators would prohibit the use of these advanced chips in military applications, government agencies, critical infrastructure, state-owned businesses, or other applications that might raise security concerns.
A back-of-the-envelope calculation
This could be an important develop for Nvidia and its…
