New York, February 2026 – The ability of Nvidia to sell its advanced H200 artificial intelligence (AI) chips to ByteDance, the Beijing-based parent of TikTok, depends on whether the company accepts stringent conditions imposed by the U.S. government, sources familiar with the matter said.
The Trump administration has indicated a willingness to allow exports of the high-performance Nvidia H200 chips to ByteDance and potentially other Chinese tech firms, including Alibaba Group and Tencent, provided that strict Know-Your-Customer (KYC) and other safeguards are adopted to ensure that China’s military or sensitive entities cannot gain access.
A licence offering was reportedly made about two weeks ago, but Nvidia has not yet agreed to the draft conditions, with executives saying any terms must be “commercially practical” to avoid driving customers to competitors. Nvidia emphasised it acts as an intermediary between the U.S. government and Chinese customers and cannot unilaterally alter licensing terms.
The conditions are part of a broader effort by U.S. policymakers to balance national security concerns with maintaining the competitiveness of American tech firms in the world’s largest AI hardware market. If agreed, the licences would open the door for substantial orders of H200 chips, with reports suggesting ByteDance could plan sizable purchases of Nvidia AI chips in 2026 if the terms are acceptable.
Chinese approval is also a factor; Beijing has previously moved to allow major tech companies to import advanced chips under domestic conditions, underscoring the deep interdependence and regulatory complexity of U.S.-China technology trade.
The negotiations reflect the broader geopolitical tensions shaping the global AI semiconductor landscape, where export control policies and commercial practicality must align before major technology transfers can proceed.
