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Demand for NVIDIA H20 chips surges as Chinese companies adopt DeepSeek’s AImodels: report
Chinese companies are dramatically increasing their orders for NVIDIA's H20 AI chips due to rising demand for DeepSeek's affordable AI models. Major cloud providers like Tencent and Alibaba are leading this surge amid US export controls that restrict access to more advanced GPUs.
Key points
- Chinese companies are increasing orders for NVIDIA H20 chips.
- The demand surge is driven by the adoption of DeepSeek's low-cost AI models.
- Major cloud service providers such as Tencent, Alibaba, and ByteDance are significantly increasing orders.
- Smaller businesses in sectors like healthcare and education are also purchasing AI servers with H20 chips.
- US export controls prevent the sale of advanced A100 and H100 chips to China, making H20 the accessible choice.
Why it matters
- This trend aligns with the increasing adoption of AI technologies in China, particularly in cloud computing.
- The move indicates a shift towards cost-effective AI solutions due to geopolitical tensions impacting tech supplies.
- The demand for chips reflects broader 2025 IT trends focused on AI integration in various industries.
The surge in orders for NVIDIA's H20 chips by Chinese companies illustrates the growing importance of accessible AI technologies, influenced heavily by current trade restrictions and the rapid development of AI applications across multiple sectors.