US rules keep China from buying top-tier AI chips from NVIDIA. Instead, Chinese companies must use less powerful AI chips called H20. Yet these weaker chips still attract huge business. Chinese tech giants ByteDance, Alibaba, and Tencent have placed orders worth over $16 billion for these H20 chips. This shows how much NVIDIA has won in the Chinese market despite limits.
DeepSeek briefly dropped NVIDIA stock prices. Then, their AI systems, DeepSeek R1 and V2, sparked new AI interest across China. Chinese companies started racing each other to build better AI systems. Because of this competition, they bought lots of NVIDIA hardware. The rush created big supply problems that NVIDIA finds hard to fix.
Chinese buyers can also purchase an...