Chinese Cos Ramp Up Nvidia H20 Orders

The Trump administration is looking at the imposition of restrictions on the sale of the H20 chip to China

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Chinese companies are ramping up orders for Nvidia's H20 artificial intelligence (AI) chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said.

The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia's dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand.

Tencent, Alibaba, and ByteDance have "significantly increased" orders of the H20—a chip specific to China due to U.S. export controls—since the Chinese AI startup burst into the global public consciousness last month, two of the people said.

In addition to their internal needs for advanced AI chips, the three tech giants provide cloud computing services through which other firms can access and use AI tools.