Alibaba Secures License for 75,000 Nvidia H200 Chips with 38% Cloud Growth
Alibaba received approval to purchase up to 75,000 Nvidia H200 AI chips under U.S. Commerce Department licenses, but deliveries remain stalled as Beijing tightens scrutiny and U.S.-China trade discussions continue. In Q4, Cloud Intelligence revenue rose 38% year-over-year with external customer growth up 40%, despite headline earnings and revenue misses.
1. Nvidia H200 Chip Approval
Alibaba was among ten Chinese companies granted U.S. Commerce Department licenses to acquire up to 75,000 Nvidia H200 AI chips, marking a significant step in its AI hardware supply chain.
2. Delivery Delays and Geopolitical Impact
Despite approvals, shipments have not commenced due to ongoing trade discussions between Washington and Beijing and heightened scrutiny by Chinese regulators, underscoring supply chain uncertainties.
3. Q4 Cloud Intelligence Performance
In its fiscal Q4, Alibaba’s Cloud Intelligence segment reported 38% year-over-year revenue growth and 40% external customer expansion, although overall earnings and revenue fell short of internal targets.
4. AI Capital Spending Strategy
CEO Eddie Wu Yongming indicated that Alibaba may exceed its planned AI capital expenditures to strengthen its full-stack AI strategy, encompassing chips, cloud infrastructure, models, and applications.