China Tech Giants 'Ordered $16 Billion of New Nvidia Chips'

Chinese tech giants have rushed to place orders for at least $16 billion worth of Nvidia’s H20 server chips, according to a report by The Information.

Alibaba, Bytedance and Tencent Holdings have placed at least that amount in the first three months of this year, the report, which cited two sources with direct knowledge of the transactions, said.

In February, Reuters first reported a surge in orders for the H20 – the most advanced AI processor legally available in China under US export controls driven by booming demand for Chinese startup DeepSeek’s low-cost AI models.

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The H20 is the primary chip that Nvidia is legally permitted to sell in China and was launched after the latest round of US export restrictions took effect in October 2023.

Washington – the Biden Administration – banned exports of Nvidia’s most advanced chips to China more than two years ago, because of concern that advanced technologies could be used by China to build up its military capabilities.

US President Donald Trump said in February he intends to impose tariffs of around 25% on the imports of semiconductors and related products.

Nvidia chief executive Jensen Huang has said the company sees little short-term impact but would move production to the United States in the longer term.