ByteDance, Alibaba, Tencent place over $35 billion worth of Nvidia chip orders
The orders highlight Chinese firms’ scramble for export-compliant Nvidia chips as U.S. controls block sales of its most advanced data-center 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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It is said to be a less powerful chip, but in line with US export restrictions for trade with China.
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ByteDance, Alibaba and Tencent Order More Than $35 Billion in Nvidia Chips
ByteDance, Alibaba and Tencent have collectively ordered more than 3 million Nvidia RTX PRO 5500 graphics cards worth over $35 billion. Nvidia has warned that it may struggle to fulfill the requested volumes as US export restrictions and limited production capacity constrain supplies of advanced computing hardware.
CNBC-TV18
ByteDance, Alibaba, Tencent place over $35 billion worth of Nvidia chip orders
ByteDance, Alibaba and Tencent have ordered more than 3 million of Nvidia's new RTX PRO 5500 graphics cards with a collective sticker price of over $35 billion, two people familiar with the matter said, in a rush for a less powerful but export-compliant chip amid US restrictions on trade with China.
ByteDance, Alibaba and Tencent would have requested more than 3 million RTX PRO 5500 cards, with a value above USD $35 billion. Nvidia warned that Chinese demand exceeds the expected production and that some partners could receive only between 5% and 10% of the requested amounts.
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