Chinese Tech Giants Still Buying Nvidia’s Chips Despite Beijing’s Pressure.

Alibaba, Bytedance push ahead with Nvidia Chip orders as China tightens scrutiny.

Shalom Ihuoma
1 Min Read

Several Chinese technology companies, including Alibaba and ByteDance, are still seeking to buy Nvidia’s artificial intelligence chips despite government pressure not to do so. The chips in demand include the H20 and the upcoming B30A model. Both are modified to meet U.S. export restrictions and are less advanced than Nvidia’s global versions.

Nvidia

Related: Nvidia Reportedly Readies New AI Chip for China

The B30A is expected to perform up to six times better than the H20. It could cost about twice as much, estimated at between $20,000 and $24,000.

Chinese regulators have called in companies over their chip purchases. They expressed concerns about information security but have not imposed a direct ban on Nvidia chips.

The United States has allowed some chip exports to China. Washington reached an agreement to collect 15% of revenue from sales of the H20 in China. Nvidia reported that China accounted for 13% of its total revenue over the past year. The company reduced its forecasts for the Chinese market due to uncertainty.

Nvidia has large inventories of chips ready for export. It also plans to test the B30A in China. The potential market is estimated at around $50 billion.

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