Chinese regulators have given Alibaba, Tencent Holdings Ltd., and ByteDance Ltd. in-principle approval to move forward with preparations to buy semiconductors. The companies can now discuss important details like funding amounts. Beijing wants them to buy some domestic chips as part of the deal, but the exact quantity is not fixed yet. Nvidia shares rose up to 2.3% in early trading, while Taiwan Semiconductor Manufacturing Co.'s shares gained 1.3%. This shows China is pushing ahead with shipments of the H200 chip, a key issue in US-China trade talks. The government is focusing on major Chinese players like Alibaba and Tencent, who are investing billions in data centers for AI services. Nvidia CEO Jensen Huang hopes the AI chip market will bring in $50 billion soon. Meanwhile, Chinese companies like Huawei and Cambricon have grown in Nvidia's absence and plan to increase chip production quickly.