Nvidia sees Rush for commands of chips Ai H20 Car Deepseek disturbs the ia – tencent, alibaba, bytedance fuel demand market – Alibaba gr hldgs (nyse: baba), nvidia (nasdaq: nvda)

Chinese technology giants Tencent holding Tcehy,, Alibaba Group Holdings Ltd BabaAnd Bytedance have considerably increased orders for NVIDIA Corporation Nvda H20 AI chips, as climb Deepseek The low -cost AI models lead to an increase in AI calculation power demand.

What happened: The peak in the h20 flea orders, reported by Reuters, citing six people familiar with the question, highlights Nvidia’s continuous domination in the IA flea market.

The H20 is a specific china chip, developed in response to American export restrictions that prevent Nvidia from selling its most advanced AI equipment for Chinese companies.

Although there are concerns about additional American trade restrictions, sources say that the main engine behind demand is Deepseek AI models, which optimize calculation efficiency for inference tasks rather than s ‘Press only the gross treatment power.

See also: Google continued on IA research overviews – The education company claims that the technology giant flies with content and stimulates active publishers

These models have acquired rapid adoption in industries, from cloud computing to automobile applications.

Tencent would have tested the Deepseek AI models in WeChatwhile the automaker Large wall Integrated them into its connected vehicle systems. Analysts estimate that NVIDIA has sent around 1 million H20 chips in 2024, generating more than $ 12 billion in income.

Why is it important: Last month, Nvidia recognized Chinese depth R1 AI model. The model was built for less than $ 6 million, allegedly outdated Top us models, including those of OPENAI.

This step contributed to a broader slowdown in the technological market, resulting in a 17% drop in Nvidia shares and a dive of more than 20% in IA infrastructure actions. This has also led to a drop of $ 600 billion in Nvidia’s market capitalization.

Earlier this month, in an interview, the CEO of Nvidia Jensen Huang tackled investors’ concernsAwarding the sale to false ideas on IA infrastructure expenses.

Price action: In trade after opening hours, Nvidia increased by 0.51%, reaching $ 130.95 at the time of publication, according to Benzinga pro.

Image via Shutterstock

Read then:

Non-liability clause: This content was partially produced with the help of Benzinga Neuro and was examined and published by the publishers of Benzinga.