NVIDIA's CEO has confirmed the H200 chip is back in production and that the company has received purchase orders from China.

NVIDIA's CEO recently revealed that the company has witnessed a breakthrough in its business in China, and following that, the firm has begun preparing for a new Groq solution as well. NVIDIA's H200 Is Back In Production Once Again, And This Time, Jensen Is Confident With Its Approval The NVIDIA-China fiasco has been one to watch, especially since it has been one inconsistent venture for Jensen and his team. Regulatory hurdles and the evolving demands of domestic hyperscalers have forced NVIDIA to revise its plans several times; however, this time, it appears Jensen might finally have the breakthrough he needs. A CNBC report reveals that NVIDIA's CEO has confirmed the H200 chip is back in production and that the company has received purchase orders from China. We have received purchase orders, and we’re in the process of restarting our manufacturing. That’s new news for all of you, and it’s different than it was two weeks ago or three weeks ago, but that’s our condition today ... and our supply chain is getting fired up. - CNBC The problem with the H200 AI chips that NVIDIA recently faced is that the company has to navigate the bureaucratic overhead involved in getting its shipments approved, not just on the US side but also in China. In a report, we discussed how hurdles from Chinese regulators are 'convincing' NVIDIA to divert H200 AI chip production to Vera Rubin, but it appears NVIDIA isn't leaving China anytime soon. With Jensen disclosing that H200 production has been restarted, we could expect shipments to begin within weeks, provided another hurdle doesn't emerge. Interestingly, NVIDIA's Groq partnership will also influence Chinese hyperscalers, as a Reuters report indicates that new chips are being prepared for the region. As Vera Rubin isn't available in China, Groq's LPUs will likely be paired with the Hopper generation, which would be a surprising move by NVIDIA. At the same time, the idea is to target the inference demand in the region as well. Since AI has reached an 'inflection' point with inference, China sees tremendous compute requirements as well, which is why the urgent Groq + Hopper pair has been made. Groq chips are expected to be available to Chinese customers by May, and NVIDIA isn't expected to offer a downgraded version, so likely the 3rd-generation LPUs. It would be interesting to see whether the inference throughput of Groq with Hopper is something China considers, but given the region's limited options, it is likely to be a popular choice.

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