Nvidia is shifting its China strategy. Here’s why.

00:00 Speaker A

When Nvidia is making a pivot on its China strategy. The FT now reporting that the tech giant is stopping production of its eight H200 chips destined for the Chinese market. Instead, Nvidia plans to shift capacity to focus on making its next gen Vera Rubin hardware. Dan Howley, of course, is with me for the latest developments. Daniel, great to see you as always. So let’s talk about this. The report is Nvidia’s halting China-bound H200 output. So I will double barrel this. What is H200 first? Explain it for us. And why do you think Nvidia could be making this move?

00:46 Daniel Howley

So H200 is the hopper chip that they had. So H, hopper, pretty easy. Uh B200 is the original Blackwell chip, B300 Blackwell Ultra, you know, yada yada yada. Uh this was going to be the chip that was going to go to China, right? The US had said, you know, all right, you guys can can ship it, you know, we’ll take a little slice of the, you know, the pie when you you get the cash for it. Uh and and that’s how we’ll roll.

01:13 Daniel Howley

if China plays ball. And so so far, uh you know, we’ve we’ve seen reports of China saying to certain companies, uh Alibaba, uh what have you that yeah, go ahead, you can you can order them but in like limited quantities. We’ve seen reports of China uh saying nobody use it, use homegrown chips. Uh and so on Nvidia’s most recent earnings call, Jensen Wong, CEO had said, we’ve gotten no revenue from China. That’s…