Chinese companies have invested $16 billion to order new NVIDIA chips. Against the backdrop of a possible introduction of stricter export controls by the US government, in the first three months of 2025, Chinese technology companies including ByteDance and Alibaba have placed large - scale orders for NVIDIA...

Chinese Enterprises Spend $16 Billion on Ordering New NVIDIA Chips

Against the backdrop of possible stricter export controls by the US government, in the first three months of 2025, Chinese technology companies including ByteDance and Alibaba have placed large-scale orders for NVIDIA H20 server chips, with a total value of up to $16 billion, for the training and inference of artificial intelligence models. The surge in orders has brought substantial revenue to NVIDIA, but only if it can deliver on schedule before the new restrictions take effect. Due to US restrictions on the export of advanced AI chips to China, the H20 has become the most powerful chip that NVIDIA can legally sell to China at present. However, its computing speed is only 1/15 that of the latest generation of Blackwell chips, showing a performance gap. To mitigate this shortcoming, NVIDIA has combined the H20 with the HBM used in its Blackwell system to launch an upgraded H20 with stronger performance. Most Chinese companies have purchased this version to meet their AI training needs.

—— Tencent Technology, The Information

via Windvane Reference Express - Telegram Channel