Full Breakdown
Nvidia’s H200 AI Chip Deal Stalls Amid U.S.–China Tensions
5/15/2026, 8:19:57 PM
Stalled H200 Deal
The U.S. cleared ten Chinese firms—Alibaba, Tencent, ByteDance, JD.com—and Lenovo, Foxconn to buy Nvidia’s H200 AI chip (75,000 units). No shipments have occurred as CEO Jensen Huang travels with President Donald Trump to Beijing.
Background
Nvidia held ~95 % of China’s advanced-chip market and ~13 % of revenue. The Trump administration approved H200 sales in Dec 2025 and added security safeguards in Jan 2026.
Key Players
Nvidia CEO Jensen Huang, U.S. officials Jamieson Greer and Howard Lutnick, President Donald Trump, President Xi Jinping, and Chinese firms Alibaba, Tencent, ByteDance, JD.com, Lenovo, Foxconn.
Timeline
May 14 2026: licences announced. May 14-15: Trump-Xi summit; Huang added; Greer says chip controls not a major topic. May 15: Trump says China “chose not to” buy H200; Greer stresses sovereign decision.
Data & Statistics
Licences cover ~10 firms, each up to 75,000 H200 chips. The H200 is Nvidia’s second-most powerful AI processor; potential revenue $3.5-$4 billion.
Why It Matters
Restoring Chinese sales could add billions to Nvidia’s earnings and expand U.S. AI influence; Chinese self-sufficiency could narrow the U.S. lead.
Official Statements & Responses
Greer told Bloomberg H200 “is going to be a sovereign decision for China” and chip controls were not a major topic. Lutnick said China “has not let them, as of yet, buy chips, because they’re trying to keep domestic industry.” Trump said Air Force One Chinese firms “chose not to” buy chips; “something could happen.” Nvidia CFO Colette Kress said “has yet to generate revenue” from sales.
Criticism & Opposition
Chris McGuire warned that “any deal that allows Nvidia to sell more chips to China means fewer Nvidia chips for U.S. firms, and a smaller U.S. lead in AI over China.” Jim Cramer said forcing China to build its own chips “could let them catch up and, with seemingly unlimited electricity, surpass us.”
Conflicting Reports & Gaps
U.S. sources confirm licences, but Chinese firms cite “guidance from Beijing” that halted orders; the specific U.S. policy change prompting caution remains unclear, and no Chinese authorization has been issued.
Verbatim Quotes
- “The decision on whether to buy the H200 “is going to be a sovereign decision for China,” Mr.” — Jamieson Greer, U.S. Trade Representative
- “They chose not to, they want to try to develop their own,” — Donald Trump, President of the United States
- “the Chinese central government has not let them, as of yet, buy the chips, because they're trying to keep their investment focused on their own domestic industry.” — Howard Lutnick, U.S. Commerce Secretary
- “Any deal that allows Nvidia to sell more chips to China means fewer Nvidia chips for U.S. firms, and a smaller U.S. lead in AI over China.” — Chris McGuire, Council on Foreign Relations
What’s Next
Nvidia’s earnings release on May 20 will reveal whether any H200 revenue materialized. Further diplomatic talks between Trump and Xi could clarify Beijing’s stance, while U.S. officials may revisit licensing terms if the stalemate persists.
