Login to Continue Learning
This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
NVIDIA’s AI GPUs continue to be popular among Chinese firms despite government efforts to reduce reliance on foreign products, as reported by Reuters. Two sources revealed that tech giants Alibaba and ByteDance are keen to place orders for the H20 AI GPU and are willing to pay up to $24,000 for NVIDIA’s next-generation B30A China-specific AI GPUs.
NVIDIA’s Product Superiority & Local Supply Constraints Continue to Generate Demand for H20 AI GPUs, Say Sources
According to reports by brokerages, small and medium-sized Chinese AI developers continue to favor NVIDIA’s AI GPUs due to better software integration and performance in chip clusters. Despite the Chinese government’s push for local firms to rely on domestic chips, there is a strong preference for NVIDIA’s products.
The US restrictions on NVIDIA and AMD AI GPU sales to China, which were lifted in August, have sparked growing interest in domestic chip firms. For instance, Cambricon saw its revenue grow 43 times annually in the first half of 2025 due to few domestic alternatives apart from Huawei.
Even as domestic Chinese AI chip firms benefit from this growing interest, NVIDIA’s products remain the most preferred. Reuters reported that ByteDance and Alibaba are continuing to favor NVIDIA’s AI chips and are closely watching the license approval status of the H20 GPUs. AI software firms in China also express enthusiasm for future NVIDIA AI GPUs.
AFTER NVIDIA’S LATEST EARNINGS REPORT LED TO MUTED SHARE PRICE ACTION DUE TO MISSED DATA CENTER REVENUE GUIDANCE, CEO JENSEN HUANG CONFIRMED TO FOX BUSINESS THAT HE WAS CONFIDENT IN SECURING US APPROVAL FOR NEW CHINA-SPECIFIC CHIPS DESIGNED WITH THE BLACKWELL ARCHITECTURE. Huang’s sentiments were aimed at reassuring investors about NVIDIA’s China revenue.
According to Reuters, participants in the demand side are equally enthusiastic and willing to pay double the current price of $10,000 to $12,000 for the B30A GPU, believing it can offer six times the performance compared to its predecessor. The report also notes that NVIDIA and AMD are winding down their supply chain operations for China-specific AI GPUs.
AMD’s CFO Jean Hu announced yesterday at a conference that her firm has stopped starting new wafer production for the company’s China-specific MI300 AI GPU. She added that getting visibility on the license approval situation for these chips is crucial to deciding whether to invest more in Chinese AI chips.
