Beijing to continue insulating domestic chipmakers

Beijing's guidance to Chinese firms to stop placing orders for H200 chips is unlikely to reflect an outright ban. Instead, China's leadership looks to be pausing orders as it tries to regulate imports in a way that protects the domestic chipmaking industry, while still allowing Chinese AI companies to benefit from Nvidia's superior chip technology. Indeed, we expect H200s to help accelerate China's AI development and rollout this year.