China has approved its top AI startup, DeepSeek, to purchase Nvidia H200 chips, sources told Reuters. The approval comes with regulatory conditions that are still being finalised.

ByteDance, Alibaba, and Tencent have also received permission to buy a combined total of more than 400,000 H200 chips. Nvidia CEO Jensen Huang said his company has not received official information about the approvals and believes China is still finalising the licence.

China’s industry and commerce ministries have granted approvals for all four companies, but the conditions are being decided by the National Development and Reform Commission. The ministries and NDRC did not respond to requests for comment. DeepSeek, known for its cost-effective AI models, also did not comment.

The H200 chip, Nvidia’s second most powerful AI processor, is in high demand among Chinese firms. While the U.S. recently cleared the way for exports, Beijing’s approval remains necessary for shipments.

Any purchases of Nvidia H200 chips by DeepSeek could receive further scrutiny from U.S. authorities. Despite this, Chinese firms continue to show strong interest in acquiring the chips.

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