ByteDance, Alibaba, Tencent place over $35 billion worth of Nvidia chip orders
The orders reflect surging Chinese demand for export-compliant chips as U.S. restrictions block Nvidia’s most powerful AI processors.
- ByteDance, Alibaba, and Tencent have ordered more than 3 million Nvidia RTX PRO 5500 graphics cards with a collective value exceeding $35 billion. The three tech giants are securing these export-compliant chips as US trade restrictions limit access to more powerful hardware.
- These RTX PRO 5500 units serve as an export-compliant alternative for Chinese firms currently barred from purchasing Nvidia's Blackwell-based B300 and Hopper-based H200 processors. Companies intend to use the cards primarily for AI inference workloads, requiring less computing power than model training.
- Demand from Chinese technology companies far exceeds planned production, with cards priced at about $11,400 each. Nvidia has told partners they might receive only 5% to 10% of quantities requested, citing manufacturing constraints.
- Nvidia indicated it could produce no more than 3 million RTX PRO 5500 cards globally in 2027, according to sources. The company is prioritizing manufacturing capacity at Taiwan Semiconductor Manufacturing Co for its next-generation Rubin platform.
- Major Chinese tech firms initially showed little interest last year, hoping Washington would eventually allow sales of more powerful processors. Those expectations have faded as restrictions remained in place, making the RTX PRO 5500 a necessary substitute.
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ByteDance, Alibaba and Tencent Just Ordered $35 Billion of Nvidia Chips
China's tech giants just placed chip orders so massive that Nvidia admitted it cannot guarantee filling them, and the stock barely flinched. The reason why reveals something surprising about where Nvidia's real growth story is headed.
Major Chinese tech companies have placed large orders for artificial intelligence (AI) semiconductors from U.S. company Nvidia. While China is encouraging its domestic companies to use domestic semiconductors, demand for U.S. products appears to remain significant. This has led to analysis suggesting that U.S. export controls on China are proving effective.
Chinese companies ByteDance, Alibaba, and Tencent are reported to have ordered over 3 million Nvidia graphics cards that meet U.S. semiconductor export regulations. While the order value exceeds $35 billion (approximately 47 trillion won), actual supply is expected to be limited as China's total order volume more than doubles Nvidia's projected production for next year. Despite U.S. export controls on advanced semiconductors, Chinese companies' …
(Seoul = Yonhap News) Reporter Lee Seong-han = Three major Chinese tech companies, including ByteDance, Alibaba, and Tencent, [are targeting] Nvidia's R... which is not subject to U.S. export restrictions
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