China limits Nvidia chip purchases to special circumstances, Information reports

(Reuters) - The Chinese government this week told some tech companies it would only approve their purchases of Nvidia's H200 AI chips under special circumstances, such as for university research, the Information reported on Tuesday, citing two people with direct knowledge of the situation.

The move signals Beijing is remaining cautious about fully reopening the Chinese market to Nvidia, whose semiconductors are pivotal in operating the most advanced artificial intelligence applications and data centers.

China's government issued a "deliberately vague" directive, the report said, telling some technology firms to buy chips only when "necessary" but was unclear as to what that means.

The Information reported last week that China had asked some companies to halt their orders for the H200 chips, as it looked to prioritize domestic firms in their race to dominate AI.

Nvidia is caught between Washington and Beijing, as the U.S. weighs tighter export controls on its most advanced technology while China pushes to strengthen domestic AI capabilities and urges local firms to curb reliance on foreign tech.

Nvidia and the Chinese embassy in the US did not immediately respond to Reuters' requests for comment.

The Chinese government plans to convene additional meetings with more companies to deliver the purchase directive, though it is unclear whether those sessions will include any new guidance, the report said.