Nvidia’s H20 chip orders jump as Chinese firms adopt DeepSeek’s AI models, sources say

Chinese companies are ramping up orders for Nvidia’s H20 artificial intelligence chip due to booming demand for DeepSeek’s low-cost AI models, six people familiar with the matter told Reuters.

Tencent, Alibaba and ByteDance have “significantly increased” orders of the H20 – a chip specific to China due to U.S. export controls – since the Chinese AI startup burst into the global public consciousness last month, two of the people said.

Why it matters

The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia’s dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand.