Chinese government authorities have granted approval for the sale of Nvidia’s H200 AI chips to select domestic customers, including Alibaba Group Holding and ByteDance. The Trump administration previously authorized shipments of these advanced chips under eased export controls.

Access to H200 chips will enable Alibaba Cloud to enhance its AI model training and inference capabilities with high-performance tensor processing. This upgrade is expected to improve service offerings for enterprise clients requiring large-scale AI workloads.

By integrating Nvidia’s latest AI hardware, Alibaba Cloud can better compete with global cloud providers in sectors such as autonomous driving, natural language processing and recommendation engines. Strengthened AI infrastructure may drive higher margin services and attract new business.