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China May Allow ByteDance, Alibaba to Buy Nvidia Chips Amid Capacity Crunch
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Firstpost•28-09-2026, 00:55
China May Allow ByteDance, Alibaba to Buy Nvidia Chips Amid Capacity Crunch
- •China's government has signaled approval for domestic companies like ByteDance and Alibaba to purchase Nvidia's RTX Pro 5500 chips, designed for high-end professional computers.
- •The Ministry of Industry and Information Technology requested purchase plans from these companies and indicated an intent to approve them.
- •Chinese companies require government approval for chip purchases to protect local semiconductor manufacturers and reduce reliance on US technology.
- •The US government permits Nvidia to sell certain processors, including the H200 and RTX Pro 5500, to approved Chinese firms within limits.
- •This potential shift highlights a growing computing capacity crunch faced by China's technology companies, despite previous US export controls impacting Nvidia's market share in China.
Key Questions Answered
The Chinese government has signaled that domestic companies such as ByteDance and Alibaba are permitted to purchase Nvidia chips built for high-end professional computers and AI workloads, including the RTX Pro 5500 and H200 processors.
Chinese companies need government approval to purchase Nvidia chips in order to protect local semiconductor manufacturers and control reliance on US technologies.
Nvidia's market share in China effectively fell to zero due to US export controls and Beijing's strategic push for technological self-reliance, though small batches of chips like the H200 have recently entered mainland China.
