Chinese technology giants, including Tencent, Alibaba and Bytedance, are increasing orders for the NVIDIA AI H20 chip to meet the growing demand for Deepseek’s profitable IA models. The H20, designed for China due to American export restrictions, is crucial for AI and Cloud Computing applications, with the adoption of health care and education health.
This push highlights the solid position of the Nvidia market, although the new potential American restrictions encourage companies to quickly secure supplies. NVIDIA has not disclosed the exact demand figures but plans to send around 1 million H20 chips in 2024. Although Huawei takes advantage of the focus of Deepseek on inference, the H20 of Nvidia remains the ia chip preferred in China despite local competition.