Nvidia (NVDA, Financials), the semiconductor company best known for AI processors and data center hardware, has begun shipping a small number of H200 chips to China, according to a senior U.S. Commerce Department official.
Jeffrey Kessler told lawmakers that exports have started, though only very few chips have been delivered so far. The H200 is one of Nvidia's most powerful AI processors, making the shipments politically sensitive.
Washington has spent years tightening restrictions on advanced chips that could support China's military or technology ambitions.
Some Chinese companies, including a unit of ZTE, have reportedly received approval to buy the chips. Alibaba, Tencent and ByteDance were also among firms previously cleared, though deliveries had not begun at that stage.
The issue has reopened debate in Congress over how the U.S. is enforcing export controls. Critics say the rules are becoming too flexible, while the Commerce Department argues that approved sales can still be monitored.
For Nvidia, China remains a major opportunity, but also a regulatory risk. Investors will be watching whether shipments expand and whether Washington introduces tougher AI-chip rules.