Nvidia (NVDA) is seeing increased orders for its H20 artificial intelligence chip from Chinese companies like Alibaba Group Holding (BABA), ByteDance, and Tencent as demand for DeepSeek's low-cost AI models rise, Reuters reported Tuesday, citing unnamed sources familiar with the matter.
Two of the sources told Reuters that the three Chinese firms "significantly increased" their orders of the chip, which is specifically made for China, because of US export rules. Another source said smaller companies in other sectors are also buying AI servers with H20 chips and DeepSeek models, the report added.
No further details on the orders were disclosed.
Nvidia, Alibaba, ByteDance, and Tencent did not immediately respond to MT Newswires' requests for comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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