China tech stocks moved higher on Wednesday after Reuters reported that Beijing has approved purchases of Nvidia’s (NVDA) H200 AI chips by some of the country’s largest internet companies. The report said Chinese authorities gave approval to Alibaba (BABA), Tencent (TCEHY), and ByteDance to buy more than 400,000 H200 chips in total. Other companies are expected to apply for approvals later, according to people familiar with the matter.
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However, the approvals come with conditions that are still being decided, and some may be restrictive.
Investors see the move as positive for China’s biggest tech firms, which are spending heavily on data centers to build AI services. The H200 chips are reported to be far faster than the H20, making them important for training AI models at large tech firms.
China has encouraged companies to rely more on domestic chips, but regulators appear willing to allow limited imports to avoid slowing AI development at major internet platforms.
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