Isabel Lee

You know, Beijing is close to formally approving imports of components essential to running AI.

That's according to people familiar with the matter.

And this means Beijing will encourage companies to buy a certain amount of domestic chips as a conditional approval.

So the government is obviously prioritizing the needs of major Chinese hyperscalers.

The government is obviously prioritizing the needs of major Chinese hyperscalers.

But what does this mean for NVIDIA?

It's definitely a major win because NVIDIA has been angling for years to resume business with the world's largest semiconductor.

We have CEO Jensen Huang saying that the AI chip segment alone could generate $50 billion in the coming years.

So that's definitely an eye-popping number.

Chinese officials have told the largest firms in China, this includes Alibaba, Tencent and ByteDance, that they can prepare orders for NVIDIA's H200 AI chips.

So this suggests that, you know, Beijing is close to formally approving imports of components essential to running AI.

That's according to people familiar with the matter.

And this means Beijing will encourage companies to buy a certain amount of domestic chips as a conditional requirement.