Chinese tech giants are pushing ahead with Nvidia Corp. NVDA purchases even as regulators in Beijing caution them against heavy reliance on U.S. chips.
Chinese Firms Stockpile Nvidia's $12,000 H20 Despite Beijing Pressure
Alibaba Group Holding Ltd BABA, ByteDance and other leading firms are pressing suppliers to confirm deliveries of Nvidia's H20 processors, according to Reuters.
currently priced between $10,000 and $12,000, while monitoring the possible rollout of the B30A, a next-generation chip built on the Blackwell architecture, according to people familiar with procurement discussions.
B30A Could Be Six Times Faster And Twice As Expensive As H20
If Washington approves the B30A, it could be up to six times more powerful than the H20, though its cost is expected to be nearly double, according to a report by Reuters.
Chinese tech companies consider the potential performance boost to outweigh the higher price, seeing it as a worthwhile investment for maintaining AI competitiveness.
Nvidia CEO Jensen Huang has privately reassured Chinese customers that H20 shipments are secure, despite ongoing negotiations with the U.S. government over a deal requiring Nvidia to hand over 15% of China-related sales.
"Competition has undeniably arrived," Nvidia said in a statement, without elaborating on rivals such as Huawei and Cambricon.
China Flags Security Concerns Over Nvidia H20 Chips Amid US-China Tech Tensions
In August, China signaled strong opposition to any U.S. proposals to embed tracking technology in high-end chips, sending a clear warning to Nvidia executives without issuing a formal ban.
This comes as Washington considers legislation requiring location-tracking in AI chips to prevent them from reaching rival states.
Nvidia's H20 AI chips are under scrutiny in China, with state media and regulators highlighting potential security risks, including backdoor vulnerabilities that could allow remote access.
Social media accounts linked to CCTV criticized the chips for being unsafe and environmentally unfriendly, raising further doubts among Chinese consumers.
Price Action: Nvidia's stock fell 0.094% to close at $170.62 on Wednesday, then gained 0.70% in premarket trading on Thursday, according to Benzinga Pro.
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