Stephanie Flanders

Beijing will let them in.

Yeah, this is a very closely watched drama.

Of course, Nvidia used to sell lots of AI chips into the China market, but Washington and Beijing have been battling over exactly what kind of chips are going to be sold and what kind of volume.

Washington has stopped the most advanced chips from

going into the market.

But the Trump administration did approve these H200 chips to be sold into the market.

It wasn't clear whether Beijing was going to let its tech companies buy these chips now.

And what we're hearing from sources is that they have given the go-ahead for the key companies you mentioned, Alibaba, Tencent, and ByteDance.

to prepare their orders, to tell them how much they want to buy from NVIDIA, and then they're going to make decisions about when exactly this is going to happen.

It's going to come with some caveats.

They do still want to build up the domestic industry.

They want these companies to also purchase from some of the domestic players, which include Huawei Technologies and CameraCon, as we've talked about in the show a few times before.

But it looks like they're going to be able to go ahead with those H200s.

Yeah, those caveats also include restrictions, right?

On both sides of this negotiation, there is agreement that the Chinese officials that we're hearing from talking about there will not be access when it comes to sensitive industries, things like that.

Just break that down, Peter.

Yeah, they're concerned.

They've said this before with the H20 chips and now the H200 chips.

They're concerned they don't want NVIDIA's chips going into sensitive areas like the military, like state-owned enterprises or government agencies for that case.

So the market's going to be narrower than what it would be otherwise.