ByteDance and Tencent apply to purchase Nvidia chips - Reuters

ByteDance and Tencent apply to purchase Nvidia chips - Reuters

In a significant development for the tech industry, ByteDance and Tencent have applied to purchase Nvidia's H20 artificial intelligence chips. This move comes following Nvidia's announcement that it has received U.S. government approval to resume sales to China, potentially lifting long-standing export restrictions.

Nvidia's CEO, Jensen Huang, met with U.S. officials and secured approval for the H20 chip, designed specifically for the Chinese market. The approval allows Nvidia to resume sales, which were previously halted due to U.S. export controls over national security concerns. The H20 chip has been a key focus of these controls, with Nvidia estimating that the restrictions would cut its revenue by $15 billion [1].

ByteDance and Tencent, two of China's largest tech giants, have scrambled to place orders for the chips. The companies have submitted applications to Nvidia, hoping to secure the AI chips that are crucial for their AI and machine learning operations. The move underscores the importance of the Chinese market for Nvidia, which generated $17 billion in revenue in the fiscal year ending January 26, accounting for 13% of the company's total sales [1].

Nvidia has also announced the development of a new AI chip, the RTX Pro GPU, which is fully compliant with U.S. export controls. This chip is designed for digital twin AI applications in sectors such as smart factories and logistics. The company aims to cater to the growing demand for high-performance computing solutions in China, a market known for its innovation and technological advancements [1].

Huang's visit to China for the third China International Supply Chain Promotion Expo further underscores Nvidia's commitment to the region. The expo is scheduled to take place in Beijing on Wednesday, where Huang is expected to hold a media briefing [1].

The approval to resume sales of the H20 chips comes amid easing tensions between Washington and Beijing. China has relaxed controls on rare earth exports, and the United States has allowed chip design software services to restart in China. Despite the uncertainties, Chinese companies continue to diversify their options to better protect their supply chain integrity [1].

Nvidia's stock price has shown positive market sentiment, reflecting investor confidence in the company's recent developments. On July 15, 2025, Nvidia's stock rose by 3.79% in pre-market trading, indicating a positive outlook for the company's future prospects in the Chinese market [2].

References:
[1] https://m.economictimes.com/tech/technology/chinese-firms-scramble-to-buy-nvidia-ai-chips-as-it-plans-to-resume-sales/articleshow/122495841.cms
[2] https://www.ainvest.com/news/nvidia-nvda-soars-3-79-china-chip-approval-2507/