Nvidia Sells Limited H200 AI Chips to China

Nvidia Corp. sold a small number of H200 artificial intelligence chips to customers in China during the quarter ending July 26, marking the first AI chip sales to the country since early 2025. These sales accounted for less than 1% of the company's data center revenue.

The sales were authorized after CEO Jensen Huang persuaded President Donald Trump to allow the chips to be sold to approved buyers, provided a 25% fee was paid to the United States. While the Bureau for Industry and Security granted a license in January, Nvidia was unable to sell the full permitted volume because authorities in Beijing raised objections. This restriction resulted in a $400 million charge for excess inventory.

Total sales in China reached $7.88 billion, nearly double the previous year's figures, though this growth was driven primarily by non-AI products such as gaming hardware. Undersecretary of Commerce for Industry and Security Jeffrey I. Kessler described the number of H200 chips sold as trivial. Nvidia continues to project zero revenue for its data center and AI chip business originating from China.