Chinese Tech Giants Still Seek Nvidia AI Chips Despite Government Pressure
Alibaba, ByteDance, and several other major Chinese technology companies remain eager to secure Nvidia’s artificial intelligence chips, even as regulators in Beijing strongly discourage such purchases, according to four people familiar with the matter.
These firms are seeking confirmation that their orders for Nvidia’s H20 model — recently reapproved for sale in China — are moving forward. They are also closely watching Nvidia’s plans for a next-generation chip, tentatively called the B30A, based on its Blackwell architecture, two of the sources said.
The B30A, if cleared for export by Washington, could cost nearly double the H20’s current $10,000–$12,000 price range. However, Chinese buyers see the chip as a worthwhile investment, with expectations that it may deliver up to six times more power than the H20. Both chips are designed as downgraded versions of global models to comply with U.S. export restrictions.
China generated 13% of Nvidia’s revenue last year, making access to cutting-edge AI hardware a central issue in the ongoing U.S.-China tech rivalry. While Washington has eased some restrictions, U.S. President Donald Trump reached a deal requiring Nvidia to allocate 15% of its H20 revenue to the U.S. government.
At the same time, Chinese regulators are urging domestic firms to reduce reliance on U.S. chips. Authorities have called in companies like Tencent and ByteDance to question their Nvidia purchases, though no official bans have been imposed.
Domestic Supply Shortages Drive Nvidia Demand
Despite Beijing’s pressure, demand for Nvidia’s chips remains strong due to limited supplies from local competitors such as Huawei and Cambricon. Engineers at several Chinese firms told Reuters that Nvidia’s chips continue to outperform domestic alternatives.
The shortage of clarity over Nvidia’s future in China has already impacted its outlook. In late August, the company issued a weaker sales forecast that excluded Chinese revenue, contributing to a 6% stock decline. Nvidia executives confirmed they had received some export licenses for the H20 but were still finalizing terms with the U.S. government.
CEO Jensen Huang has reassured Chinese partners that H20 supply remains stable, while Reuters reported that Nvidia holds an inventory of 600,000–700,000 H20 chips and has requested more production from TSMC. Nvidia also hopes to deliver B30A samples to Chinese firms as early as September.
Huang has estimated that if Nvidia can continue competing in China, the market could represent a $50 billion opportunity.
