Nvidia H20 Chips: $16 Billion Orders from ByteDance, Alibaba, and Tencent
Nvidia H20 Chips: $16 Billion Orders from ByteDance, Alibaba, and Tencent

Chinese companies, including ByteDance, Alibaba Group, and Tencent Holdings, have ordered at least $16 billion worth of Nvidia's H20 server chips in the first three months of 2025, The Information reported.
The demand for these chips is driven by the booming AI industry in China. The H20 is the most advanced AI processor Nvidia is allowed to sell in China due to U.S. export restrictions.
In February, Reuters reported a surge in orders, with Chinese startup DeepSeek using the H20 for its low-cost AI models.
Nvidia declined to comment on the report. ByteDance, Alibaba, and Tencent did not respond to requests for comment.
The H20 was launched in response to new U.S. export controls in October 2023. It has become essential for AI projects in China, where demand for AI technology is growing rapidly.
In March, H3C, a major server maker in China, warned of possible shortages of the H20 chip. A shortage could slow down AI development in China, particularly among companies investing heavily in AI.
H3C, along with Inspur, Lenovo, and Huawei's xFusion, is a major partner for Nvidia's AI chips in China.
Since 2022, the U.S. has banned exports of its most advanced chips to China, fearing military applications. President Biden's administration is also considering imposing tariffs on semiconductor imports.
Despite these challenges, Nvidia's CEO, Jensen Huang, said the company will move production to the U.S. in the long term but sees little immediate impact.
China remains a vital market for Nvidia, with the company reporting $17.11 billion in annual revenue from the region (including Hong Kong) in fiscal 2025.