NVIDIA's "China-exclusive" H20 AI accelerators are now said to be experiencing a shortage in Chinese markets as demand for computing power rises massively.
NVIDIA's "China-Exclusive" H20 GPUs Are Now Said To Be In Huge Demand With Pricing Soaring To New Levels
Well, it seems like China isn't stepping back from the world of AI at all, and with the recent achievements the nation has made in this segment, it is inevitable that the hype will increase from here on. In light of this, domestic tech giants, notably Tencent and ByteDance, have once again started to stack up AI accelerators, notably from NVIDIA, according to a report from MyDrivers. The H20 AI GPUs are in shortage right now, as they have become the next "favorites" of Chinese customers, apparently after the Hopper H100 AI GPUs.
It is claimed that Tencent has purchased a massive batch of H20 AI accelerators from NVIDIA, accounting for "tens of billions of yuan" in value, and this is mainly due to Tencent's integration of AI-oriented features into consumer applications such as Tencent Docs and Tencent Maps. Moreover, with DeepSeek's newly released AI models, companies are in pursuit of including the LLMs in their localized AI systems, which has further prompted the need for more computing power.
Companies in China have accounted for a large portion of NVIDIA's revenue, which is why it has been necessary for Team Green to uphold its presence in the domestic market. Research by Omdia shows that Tencent and ByteDance alone acquired around 230,000 NVIDIA AI chips, respectively, in 2024, and they are second to Microsoft. Hence, this shows how huge the compute demand is in China and, more importantly, how big of a role NVIDIA plans to play in fulfilling it.
NVIDIA's H20 AI accelerators are going for around 100,000 yuan per unit, which is said to be a very decent price compared to some of the domestic alternatives, like the Ascend 910B, which is said to be available at higher pricing, which has prompted Chinese firms to opt for NVIDIA, given that they have a much more robust software ecosystem.
About the author: Muhammad Zuhair is a hardware and technology reporter for Wccftech, specializing in the semiconductor industry and the complex interplay between technology, manufacturing, and geopolitics. His coverage focuses on the corporate strategies and technological roadmaps of industry giants like TSMC, NVIDIA, Samsung, and Intel. Zuhair's expertise lies in deconstructing complex topics such as fabrication nodes (e.g., 2nm process), the economic impact of policies like the CHIPS Act, and the strategic development of AI infrastructure from NVIDIA, AMD and Intel.
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