After securing approval from the U.S. Department of Commerce to sell its H200 GPUs to China, Nvidia is evaluating plans to increase production of the chips amid strong demand from Chinese companies, according to Reuters, citing anonymous sources. The H200, part of Nvidia’s Hopper generation, is among the most powerful GPUs available for training large language models and had previously been restricted from sale in China under the Biden administration’s proposed export controls. The Trump administration’s recent decision to allow the sale of H200s to China came with a condition: Nvidia must pay a 25% royalty on all sales of the chips in the country. Despite this, Chinese firms are showing significant interest, with major tech companies like Alibaba and ByteDance reportedly reaching out to Nvidia to discuss large-scale orders. While the H200 is significantly more powerful than the H20, a lower-powered version previously customized for the Chinese market, Chinese authorities are still reviewing whether to permit the import of the H200. Production remains limited, but Nvidia is considering expanding capacity to meet anticipated demand. For Nvidia, this move represents a strategic opportunity to unlock a vast market that has been constrained by U.S. export restrictions. China has been actively investing in domestic AI chip development due to concerns over supply chain security and competition, but many companies still rely on high-performance hardware to train advanced models. As a result, they have had to focus on model efficiency rather than raw computational power. Nvidia emphasized that any increase in H200 production for China will not affect its ability to supply customers in the United States. “We are managing our supply chain to ensure that licensed sales of the H200 to authorized customers in China will have no impact on our ability to supply customers in the United States,” an Nvidia spokesperson said in a statement.