Despite US, Nvidia doubles orders in China
Interest from Chinese firms in DeepSeek’s low-cost AI models has led to a surge in orders for Nvidia’s H20 chips, which it manufactures specifically for China. The orders help solidify Nvidia’s dominance in the market while also easing the impact of U.S. export restrictions, six different sources told Reuters.
TENCENT, ALIBABA AND BYTEDANCE ARE AMONG THE LEADING COMPANIESChina's leading tech giants Tencent, Alibaba and ByteDance have all significantly increased their orders for H20 chips amid rising demand for DeepSeek's artificial intelligence models, two sources told Reuters.
These companies are placing large-scale orders not only for their own AI projects, but also to provide other companies with access to these chips through cloud services.
The H20 chips stand out as a model that Nvidia developed specifically for itself after the US imposed restrictions on advanced AI chip exports to China, so they remain a critical option for companies in China.
AI SANCTIONS CONTINUE IN SMALL COMPANIESA source working at one of China's largest server manufacturers said that not only large finance and telecom companies but also smaller firms operating in different sectors such as health and education are purchasing artificial intelligence servers equipped with Nvidia's H20 chips.
This development shows that the AI market is increasingly expanding in China and strengthens Nvidia’s position in the market. Nvidia’s continued presence in China despite US chip export restrictions also demonstrates the company’s strategic adaptability.
DEEPSEEK'S IMPACT ON THE FUTURE OF THE MARKETDeepSeek has started to make a big impact on the Chinese market with its low-cost AI models. Experts say the initiative is boosting demand for Nvidia’s H20 chips, bolstering the company’s sales in China.
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