Chinese tech giants are ramping up orders for Nvidia’s H20 AI chip

Chinese tech giants, including Tencent, Alibaba, and ByteDance, are ramping up orders for Nvidia’s H20 AI chip to meet rising demand for DeepSeek’s cost-effective AI models. The H20, designed for China due to U.S. export restrictions, is crucial for AI and cloud computing applications, with adoption also growing in healthcare and education.

This surge highlights Nvidia’s strong market position, though potential new U.S. restrictions are prompting companies to secure supplies quickly. Nvidia has not disclosed exact demand figures but expects to ship around 1 million H20 chips in 2024. While Huawei benefits from DeepSeek’s focus on inference, Nvidia’s H20 remains the preferred AI chip in China despite local competition.

This article was written by Eamonn Sheridan at www.forexlive.com.