Chinese technology companies have purchased over 1 million Nvidia gaming and workstation chips this year to meet soaring AI computing demand. The buying spree, revealed by multiple industry insiders to the Financial Times, highlights Nvidia's continued significance in China despite US export controls and Beijing's push for domestic alternatives. Domestic AI chip production has more than doubled, led by Huawei, Alibaba, Baidu, and Cambricon, but demand is growing faster as major tech groups invest billions in AI models and infrastructure.
Domestic supply is expected to reach 3.5 million chips this year, but total demand may exceed 5 million. Chinese firms are turning to Nvidia's RTX Pro 6000 D, RTX Pro 5000, and RTX 5090 chips, which comply with US restrictions but can be repurposed for simpler AI workloads. Nvidia's Cuda software system remains a key draw, as most Chinese companies previously used it before being pushed toward domestic alternatives like Huawei's Cann.
Deep Seek is collaborating with Huawei to improve hardware and software, and Huawei is using AI tools to accelerate the transition from Cuda to Cann. The shortage underscores the challenges of China's rapid AI infrastructure build-out as it races to compete with the US.
Source: Financial Times Companies · Summarized by HeadlinesBriefing