Major Chinese tech companies such as ByteDance, Alibaba, and Tencent have placed orders for Nvidia H20 chips worth $16 billion. These chips are used in artificial intelligence.
Rising Demand for Nvidia H20 Chips
According to reports, Chinese companies are actively purchasing Nvidia H20 chips, which support artificial intelligence programs. The demand for such chips has increased due to companies like DeepSeek, which develop affordable AI models.
Restrictions and Potential Challenges
Since 2023, the US has implemented export rules for chips to China, prohibiting the sale of Nvidia's most powerful chips. This is due to fears that China might use AI chips to develop military technology. Additionally, discussions on a potential 25% import tax on chips are ongoing.
Market Impact and Prospects
Despite the restrictions, China remains a significant market for Nvidia. In 2025, the company earned $17.11 billion there, including Hong Kong. However, a potential shortage of H20 chips could hinder the progress of AI projects in China.
The large orders of Nvidia chips by Chinese companies highlight the importance and relevance of these technologies in artificial intelligence. These orders underline the complexity of semiconductor relations and the need to adapt to changing international trade conditions.
