ByteDance, Alibaba, and Tencent Order Nvidia Graphics Cards
ByteDance, Alibaba, and Tencent have ordered over $35 billion worth of Nvidia RTX PRO 5500 graphics cards. The orders, which exceed 3 million units, show strong demand from Chinese companies for Nvidia hardware. This demand comes despite U.S. export restrictions. Nvidia has warned that it cannot guarantee fulfillment of these orders due to production limits.
The RTX PRO 5500 is a workstation chip made for professional computers. It is one of the most powerful options available to Chinese buyers. U.S. export controls prevent the sale of Nvidia's more advanced AI processors to China. Sources say Nvidia may only fill 5% to 10% of the total requests. Planned production is capped at around 3 million cards globally by 2027. The three companies' orders are priced at about $11,400 each, leading to a potential total value over $35 billion.
Despite these challenges, the size of these orders shows that Chinese tech firms still want Nvidia products. Total orders from Chinese customers have reportedly surpassed 6 million units. This indicates a strong demand for the RTX PRO 5500. Nvidia's chief executive has recognized the difficulties in meeting this demand amid the current geopolitical climate.
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Nvidia's inability to meet these orders could impact the supply of chips in the tech sector. This is especially true for companies that rely on advanced computing hardware. The situation may lead to higher prices for available chips and could affect the broader tech market. Keep an eye on Nvidia's upcoming production updates and any changes to U.S. export policies that may influence future sales.
Based on reporting by: moneycontrol.com, businesstimes.com.sg