David Sacks, the White House's AI chief, stated that China has rejected NVIDIA's H200 AI chips in a bid to support the country's domestic semiconductor industry.
According to Bloomberg, U.S. President Donald Trump said on Monday (December 8) that he would allow exports of the H200 to China.
The U.S. government is taking measures aimed at enabling American products to enter the Chinese market and compete against rivals, challenging Chinese tech firms such as Huawei. These measures include allowing the export of the H200 to China.
This approach has the backing of David Sacks, but Sacks told Bloomberg on Friday (December 12) that he was uncertain whether it would work.
Citing an unspecified news report, Sacks said, "They rejected our chips. Clearly, they don’t want these chips, and I think the reason is that they want to achieve independence in the semiconductor industry."
On another note, Reuters reported, citing two unnamed sources familiar with the matter, that NVIDIA has informed Chinese customers it is evaluating whether to ramp up H200 production capacity, as order volumes have exceeded the company’s current output.
One of the sources said demand for the chip among Chinese enterprises is extremely strong, so NVIDIA is inclined to increase production capacity. NVIDIA has not yet responded to Reuters' request for comment.
Reuters previously reported that several major Chinese enterprises, including Alibaba and ByteDance, have approached NVIDIA this week regarding the purchase of the H200 and are interested in placing large orders.
Reports indicate that uncertainties remain as the Chinese government has not yet approved any H200 procurement deals. Sources said Chinese officials held an emergency meeting on Wednesday (December 10) to discuss the matter and will decide whether to allow shipments of the H200 to China.
Earlier, Reuters also reported, citing sources familiar with NVIDIA’s supply chain, that the current production volume of the H200 is very limited.

David Sacks, the White House's AI chief, stated that China has rejected NVIDIA's H200 AI chips in a bid to support the country's domestic semiconductor industry.
According to Bloomberg, U.S. President Donald Trump said on Monday (December 8) that he would allow exports of the H200 to China.
The U.S. government is taking measures aimed at enabling American products to enter the Chinese market and compete against rivals, challenging Chinese tech firms such as Huawei. These measures include allowing the export of the H200 to China.
This approach has the backing of David Sacks, but Sacks told Bloomberg on Friday (December 12) that he was uncertain whether it would work.
Citing an unspecified news report, Sacks said, "They rejected our chips. Clearly, they don’t want these chips, and I think the reason is that they want to achieve independence in the semiconductor industry."
On another note, Reuters reported, citing two unnamed sources familiar with the matter, that NVIDIA has informed Chinese customers it is evaluating whether to ramp up H200 production capacity, as order volumes have exceeded the company’s current output.
One of the sources said demand for the chip among Chinese enterprises is extremely strong, so NVIDIA is inclined to increase production capacity. NVIDIA has not yet responded to Reuters' request for comment.
Reuters previously reported that several major Chinese enterprises, including Alibaba and ByteDance, have approached NVIDIA this week regarding the purchase of the H200 and are interested in placing large orders.
Reports indicate that uncertainties remain as the Chinese government has not yet approved any H200 procurement deals. Sources said Chinese officials held an emergency meeting on Wednesday (December 10) to discuss the matter and will decide whether to allow shipments of the H200 to China.
Earlier, Reuters also reported, citing sources familiar with NVIDIA’s supply chain, that the current production volume of the H200 is very limited.