Chinese Tech Giants Spend $16 Billion on Nvidia AI Chips in Q1 2025

Surging demand for Nvidia's H20 GPUs reflects China's AI ambitions and concerns over potential U.S. export restrictions.

Chinese tech companies, including Alibaba, ByteDance, and Tencent, increased H20 GPU purchases by 4x to 6x compared to Q1 2024.
Nvidia's H20 chip, compliant with U.S. export restrictions, is the most advanced AI chip legally available in China.
Reports suggest Chinese firms are stockpiling GPUs in anticipation of further U.S. restrictions on AI technology exports.
H3C, a leading Chinese server maker, has warned of potential shortages due to unprecedented demand for Nvidia's products.
Concerns persist over smuggling, with some observers suggesting GPUs sold in Singapore may be diverted to China.