Overview
- The Commerce Department has sent license applications to the State, Energy and Defense Departments for review, with a decision potentially escalating to the president if agencies disagree.
- Nvidia has weighed increasing H200 production after initial orders from Chinese firms exceeded available supply, according to prior Reuters reporting.
- Security hawks in Washington warn that allowing H200 shipments could strengthen China’s military and erode the U.S. lead in artificial intelligence.
- Reporting indicates Beijing may restrict purchases to protect domestic industry, as procurement moves and subsidy plans prioritize local AI chips and some Chinese commentary labels the offer a “poison pill.”
- A Council on Foreign Relations analysis cited this week finds Huawei’s AI hardware lags Nvidia by a wide margin in performance and scale, a gap that features in arguments over the proposed sales.