Part 8/12:
Stockpiling AI Chips in Anticipation of Restrictions
In another significant development, leading Chinese tech firms, including ByteDance, Alibaba, and Tencent, have proactively stockpiled billions of dollars in Nvidia H20 AI chips in anticipation of potential tightening of US export restrictions. As these companies prepare to navigate expected limitations, the H20 GPUs serve as a compliant alternative to Nvidia’s more powerful H100 chips.
China's major tech players collectively sought approximately one million units of the H20 chips to secure a year’s supply. Despite restrictions limiting their access to these chips, Chinese companies are exploring various avenues, such as purchasing through offshore subsidiaries, to maintain their edge in AI technology.