
China's Largest AI Firms Reportedly Forked Out ~$16 Billion Total for NVIDIA H20 GPU Supplies in 2025
Last week, industry reports pointed to evidence of NVIDIA H20 AI GPU shortages in China—supply chain insiders expressed frustration about limited availability, and alleged price hikes. Days later, local media outlets have disclosed staggering sales figures. Two unnamed sources opine that the likes of Tencent, Alibaba and ByteDance have spent roughly US$16 billion on H20 purchases, across the first three months of 2025. Back in February, Reuters noted an extraordinary surge in orders for: "(Team Green's) H20 model—the most advanced AI processor legally available in China under U.S. export controls—driven by booming demand for Chinese startup DeepSeek's low-cost AI models." The unprecedented rush—to secure precious AI-crunching hardware—was likely motivated by whispers of elevated restrictions; coming from across the Pacific Ocean.
Curiously, local government bodies have allegedly "advised" a stoppage of H20 orders—a recent Financial Times article suggested that this message was directed at the nation's largest AI players (mentioned above). A few industry moles believe that NVIDIA's engineering department is working on another Chinese market exclusive AI chip, although it is not clear whether a new entrant will be designed to conform to recently introduced "not very strict" environmental regulations. Anonymous sources have made noise about an upgraded H20 variant; sporting fancy HBM3E modules.
Curiously, local government bodies have allegedly "advised" a stoppage of H20 orders—a recent Financial Times article suggested that this message was directed at the nation's largest AI players (mentioned above). A few industry moles believe that NVIDIA's engineering department is working on another Chinese market exclusive AI chip, although it is not clear whether a new entrant will be designed to conform to recently introduced "not very strict" environmental regulations. Anonymous sources have made noise about an upgraded H20 variant; sporting fancy HBM3E modules.