This is not investment advice. The author has no position in any of the stocks mentioned. Wccftech.com has a disclosure and ethics policy.
NVIDIA's AI GPUs continue to be popular among Chinese firms despite government efforts to reduce reliance on foreign products, suggests a report on Reuters, which builds on similar claims made earlier by brokerage firms. Two sources quoted by the publication reveal that Chinese big tech firms Alibaba and ByteDance are eager to have their H20 AI GPU orders processed and are willing to pay as much as $24,000 for NVIDIA's next-generation B30A China-specific AI GPUs.
NVIDIA's Product Superiority & Local Supply Constraints Continue To Generate Demand For H20 AI GPUs, Say Sources
Today's report from Reuters follows coverage by brokerages, which revealed that small and medium-sized Chinese AI developers continued to prefer NVIDIA's AI GPUs as they offered better software integration and performance in chip clusters.
The local preference for NVIDIA's chips comes despite the fact that the Chinese government has aggressively started to push local firms to rely on domestic chips and gone as far as to mandate government clusters to accommodate at least 50% domestic AI chips.
US restrictions on NVIDIA and AMD AI GPU sales to China, which were lifted in August, have also seen growing interest in domestic chip firms. One such firm Cambricon saw its revenue grow 43 times annually in the first half of 2025 amidst soaring valuation due to few domestic alternatives apart from Huawei.
However, even as domestic Chinese AI chip firms benefit from the growing interest in local chips, NVIDIA's products are still the most widely preferred. Reuters, quoting four sources, reveals that not only are Chinese big tech firms such as ByteDance and Alibaba continuing to prefer NVIDIA's AI chips, but they are also closely watching the license approval status of the H20 GPUs.
Additionally, the Chinese AI software firms continue to be enthusiastic about future NVIDIA AI GPUs. After NVIDIA's latest earnings report led to mute share price action over missed data center revenue guidance, CEO Jensen Huang confirmed to Fox Business that he was confident in being able to secure US approval for new China-specific chips designed with the Blackwell architecture.
Huang's sentiments appeared to be aimed at assuaging investors questioning NVIDIA's China revenue, and according to Reuters, participants in the demand side of the equation are equally, if not more, enthusiastic. They are willing to pay anywhere between double the $10,000 to $12,000 of the current-generation H20 AI GPU as they believe the chip, called the B30A, can offer as much as six times the performance punch over its predecessor.
The report also comes as NVIDIA and AMD wind down their supply chain operations for the China-specific AI GPUs. AMD's CFO, Jean Hu, outlined yesterday at a conference that her firm had stopped starting new wafer production for the firm's China-specific MI300 AI GPU. AMD's vice president of investor relations, Matthew Ramsay added that "getting visibility in the short term as to what" the license approval situation will be for the China chips was a key factor behind deciding whether to invest more in the Chinese AI chips.
About the author: Ramish is a seasoned technology writer and editor with more than a decade of experience. He specializes in semiconductor fabrication and market analysis. With a background in finance and supply chain management - via his bachelors in Finance and a micromasters in supply chain management from MIT - Ramish combines financial rigor with deep industry insight to deliver accurate and authoritative coverage.
Follow Wccftech on Google to get more of our news coverage in your feeds.
