China’s tech giant is rushing to secure Nvidia’s H20 chips before new US export restrictions begin. According to information reports, companies such as Bytedance, Alibaba and Tencent collectively placed orders for AI chips in the first quarter of this year.
This is a huge potential payday for Nvidia if it can be delivered before the ban becomes stricter. The company has earned $17 billion in sales from China over the past year. This accounts for approximately 13% of total revenue.
Citing two sources with direct knowledge of transactions, according to the information:
“Chinese companies, including bytedance, Alibaba Group and Tencent Holdings, have placed at least $16 billion orders of NVIDIA’s H20 server chips to run artificial intelligence in the first three months of the year ahead of a potential ban on US sales against chip sales in China.”
The report states, “Orders represent a considerable atrium for Nvidia, but only if chips can be delivered prior to new restrictions. Nvidia generated $17 billion from sales in China in the 12 months ended January 26th.”
In February, Reuters reported that demand for Nvidia’s top-class processor H20 chips, which are permitted to sell in China, is a spike that has been driven partially by the push for Chinese startup Deepseek to offer affordable AI models.
Nvidia has not commented on the latest report. Bytedance, alibaba and Tencent also did not respond to Reuters inquiries.
H20 was introduced after the new US regulations came into effect in October 2023, blocking exports of Nvidia’s most advanced chips to China. Currently, it is the most powerful option available to Chinese companies under these restrictions.
There are already concerns about whether supply can keep up. In March, Reuters said H3C, one of China’s top server manufacturers, warned of a possible shortage. This can cause headaches to help businesses improve their AI capabilities.
H3C is not alone. Other key partners that will help bring Nvidia’s AI chips to China include Inspur, Lenovo and Xfusion, spin-offs from Huawei.
Tip restrictions go back to 2022, with Washington aiming to slow access to technology that can support military ambitions. US officials continue to increase the pressure. Former President Donald Trump said in February he wanted to add a 25% tariff on semiconductor-related imports.
Nvidia CEO Jensen Huang nevertheless said the company does not expect a major short-term impact. However, in the long term, Nvidia plans to bring more production back to the US
For now, China remains a key market. Nvidia generated $171.1 billion in revenue in 2025 from the region, including Hong Kong.
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