Jan 28 (Reuters) – China has approved its first batch of Nvidia’s ​H200 artificial intelligence chips for ‌import, two people familiar with the matter told ‌Reuters, marking a shift in position as China seeks to balance its AI needs against spurring domestic ⁠development.

The approval covers ‌several hundred thousand H200 chips and was granted during ‍Nvidia Chief Executive Jensen Huang’s visit to China this week, the sources said, requesting ​anonymity due to the sensitivity ‌of the matter.

The first batch of approvals has been allocated primarily to three major Chinese internet companies, with other enterprises now joining a queue ⁠for subsequent approvals, one ​of the sources ​said.

They declined to name the companies that received the initial clearances.

China’s ‍industry and ⁠commerce ministries as well as Nvidia had not yet responded to ⁠requests for comment at the time of ‌publication.

(Reporting by Reuters staff; Editing ‌by Sonali Paul)