Chinese Tech Giants Order 6 Million Nvidia AI Chips
Alibaba, Tencent, and ByteDance ordered 6 million Nvidia RTX Pro 5500 chips but expect to receive only 1% of that volume due to production shortages.
Nvidia Corp. is struggling to meet a massive surge in global demand after Chinese AI and cloud companies placed orders for approximately 6 million RTX Pro 5500 chips. The order volume, totaling 70 billion dollars, was driven primarily by Alibaba Group Holding Ltd., Tencent Holdings Ltd., and ByteDance Ltd.
Despite the scale of the requests, the purchasing companies expect to receive only a small fraction of the hardware over the next four months. Industry sources indicate these firms predict they will receive only tens of thousands of chips, representing roughly 1% of their total orders, as the manufacturer fails to increase production quickly enough to satisfy the market.
