DeepSeek, the Chinese AI startup that sparked fears of shrinking demand for Nvidia Corp's (NASDAQ:NVDA) top-tier chips, is now reportedly seeking to buy those very processors.



<h2>China Reportedly Clears DeepSeek To Buy Nvidia Chips</h2>



China has approved DeepSeek to purchase Nvidia's H200 artificial intelligence chips, though the deal is subject to regulatory conditions that are still being finalized, Reuters reported on Friday, citing two people familiar with the matter.



Earlier this week, the publication reported that ByteDance, Alibaba Group Holdings (NYSE:BABA), and Tencent Holdings (OTC:TCEHY) have been allowed to collectively purchase more than 400,000 Nvidia H200 chips.



China's industry and commerce ministries issued the approvals, while final conditions are still being determined by the National Development and Reform Commission, the country's top economic planner, the report said.



<h2>US-China Tech Tensions </h2>



The H200 is Nvidia's second-most powerful AI chip and has become a focal point in U.S.-China technology tensions.



Although the U.S. earlier this month cleared exports of the chip to China, Beijing retains the final authority over whether shipments are allowed to proceed.



Nvidia CEO Jensen Huang said Thursday in Taipei that the company had not received confirmation of such approvals.



<h2>From Nvidia Threat To Nvidia Customer</h2>



DeepSeek rattled global markets in early 2025 after unveiling a low-cost AI model that matched the performance of leading U.S. systems at a fraction of the development cost.



The announcement fueled concerns that demand for high-end AI chips could be overestimated, triggering a sharp pullback in Nvidia shares.



Those fears now appear premature. Any DeepSeek purchase of H200 chips would signal continued reliance on Nvidia's most advanced hardware, even as AI developers pursue greater efficiency.



Futurum Group CEO Daniel Newman dismissed the bearish narrative in a post on X, writing, &#34;The moronic takes on DeepSeek ending $NVDA that made my eyeballs bleed… When in reality DeepSeek is lining up for H200s.&#34;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote>Hilarious. The moronic takes on DeepSeek ending $NVDA that made my eyeballs bleed for the 1st half of 2025… When in reality DeepSeek is lining up for H200s. Hope y'all listened 😬😮‍💨😉 https://t.co/htHVaAJUGH— Daniel Newman (@danielnewmanUV) January 30, 2026</blockquote>
</div></figure>



<h2>Geopolitical Scrutiny Looms Over Chip Sales</h2>



Previously, it was reported that a senior U.S. lawmaker had alleged that Nvidia-assisted DeepSeek models were later used by the Chinese military.



DeepSeek is expected to release its next-generation AI model, V4, in mid-February.



Price Action: Nvidia shares closed Friday at $191.13, down 0.72% with the stock slipping a further 0.49% in after-hours trading to $190.20, according to Benzinga Pro.



Nvidia earns a strong Quality rating in Benzinga's Edge Stock Rankings, backed by a positive price trend across short, medium, and long-term time frames.



<figure class="wp-block-image size-full"></figure>



Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.



Image via Shutterstock

China has conditionally approved DeepSeek, a Chinese AI startup, to purchase Nvidia's H200 chips, alleviating concerns about reduced demand for Nvidia's high-end processors. The approval, which is still subject to final regulatory conditions, follows similar permissions granted to major firms like ByteDance and Alibaba. Despite earlier fears that DeepSeek's low-cost AI model would impact Nvidia's sales, the move indicates ongoing reliance on Nvidia's advanced technology. Nvidia shares experienced a slight decline following the news, closing at $191.13.

- China has approved DeepSeek to purchase Nvidia's H200 AI chips, pending final regulatory conditions.  
- This approval follows news about ByteDance, Alibaba, and Tencent being allowed to buy over 400,000 H200 chips, amid ongoing US-China tech tensions.  
- DeepSeek's potential acquisition of these chips suggests a sustained reliance on Nvidia's technology, contrary to earlier market fears regarding demand for high-end AI processors.

DeepSeek Turns Nvidia Customer As China Approves H200 Chip Purchases: Report