China Blocks Nvidia's AI Chips Despite U.S. Export Loophole

Chinese customs A report in the Financial Times said Nvidia had expected more than one million orders from Chinese clients. Suppliers had been operating around the clock to prepare for shipping as early as March. Reuters could not immediately verify the report, which cited two people with knowledge of the matter. Chinese customs The H200 is Nvidia's second most powerful AI chip and one of the biggest flashpoints in relations between the United States and China. There is strong demand from Chinese firms, but it remains unclear if Beijing seeks to ban the chips to encourage domestic development or if the move is a bargaining tactic. The United States government is to take a share of profits from the exports under the arrangement. Experts and analysts are split on whether selling the H200 to China serves United States strategic interests.