Chinese firms order six million Nvidia GPUs despite export limits
Alibaba, ByteDance, and Tencent have ordered over six million Nvidia RTX Pro 5500 cards to run AI applications, a volume that exceeds Nvidia's global manufacturing capacity for 2027. The shortage highlights the strain on supply chains as US restrictions block access to more powerful chips.
Chinese technology giants including Alibaba, ByteDance, and Tencent have placed orders for more than six million Nvidia RTX Pro 5500 graphics cards. These companies are turning to this specific model to power AI applications because US-China trade restrictions bar them from accessing Nvidia's most powerful chips. A China-specific variant of the card has been discontinued, and the remaining variant is subject to restrictions.
The scale of these orders presents a significant logistical challenge for Nvidia. A source familiar with the matter stated that Nvidia can manufacture a maximum of three million of these units globally in 2027. Consequently, buyers are expected to receive far fewer units than they have requested. This supply gap underscores the difficulty Chinese firms face in scaling their AI capabilities under current regulatory constraints.
Meanwhile, Beijing is pursuing a dual strategy of developing domestic technology and tightening its own regulatory environment. China has announced export restrictions on 23 AI applications, including AI agents and large model procedures, citing security concerns regarding potential attacks on critical infrastructure. Access to these technologies via apps and websites is expected to remain permitted, but the broader regulatory landscape continues to evolve in response to geopolitical tensions.