STORY: Nvidia is looking into adding production capacity for its powerful H200 AI chips.
Sources said that's what the U.S. tech giant told Chinese clients after orders exceeded its current output level
President Donald Trump said on Tuesday the U.S. government would allow Nvidia to export H200 processors to China - although it will collect a 25% fee on those sales.
The H200 is Nvidia's second-fastest AI chip and the most powerful Chinese companies can currently access.
A source said Nvidia is leaning toward adding new capacity as demand from China is so strong.
Nvidia didn't immediately respond to a request for comment.
Major Chinese companies including Alibaba and ByteDance have already reached out to Nvidia this week about buying the H200, and would both like to place large orders.
But there are still uncertainties around the issue.
The Chinese government hasn't yet given permission for any purchase of the H200.
Beijing has also more recently pushed to promote its own domestic AI chip industry.
A source said Chinese officials held emergency meetings on Wednesday to talk about the matter.
