Demand for NVIDIA’s Hopper H200 AI GPUs is skyrocketing in China following the recent lift of a U.S. ban on these last-gen chips. Despite being older, these GPUs have quickly become the focus for Chinese tech companies eager to enhance their AI capabilities.
NVIDIA Hopper H200: A Surge in Chinese Demand
Sources indicate that NVIDIA’s H200 AI GPUs are experiencing a significant surge in demand in China, just after the U.S. government allowed their sale while maintaining bans on cutting-edge models like Blackwell. Reports suggest that this demand is so intense that NVIDIA is contemplating increasing its production capacity to meet the needs of its Chinese customers.
Under the new agreement, NVIDIA has to allocate 25% of each sale to the United States. This financial arrangement forces the company to consider either reducing profit margins or raising prices for the Chinese market. Initially, it was thought that China might bypass the H200 in favor of domestic technology, but current trends indicate otherwise. NVIDIA is actively working with partners to expand production and ensure sufficient supply.
Demand for the chip from Chinese companies is so strong that Nvidia is leaning toward adding new capacity, one of the sources said. They declined to be named as the discussions are private.
“We are managing our supply chain to ensure that licensed sales of the H200 to authorized customers in China will have no impact on our ability to supply customers in the United States,” an Nvidia spokesperson said in a statement to Reuters after the story was published.
Ensuring Balanced Supply Amid High Demand
Expanding production capacity will help NVIDIA maintain a stable supply chain, minimizing any potential disruption to U.S. customers. While NVIDIA ramps up production for new GPUs like Blackwell Ultra, the Hopper H200 continues to hold significant appeal due to its robust performance and software support. The growing interest in NVIDIA’s AI capabilities has led to high expectations for the imminent production of Rubin next year.
However, while demand is high, the official sale of H200 GPUs in China is still awaiting final approval from Chinese authorities, who are expected to convene next week to make a decision. Despite being older, the Hopper H200 remains a competitive option in China, bolstered by significant hardware and software optimizations that enhance its AI performance, especially for those lacking access to Blackwell models.