Nvidia Reportedly Secures $35 Billion Chip Orders from Chinese Companies
Reuters reported that Nvidia has received over $35 billion in orders for its Blackwell AI chips from major Chinese companies, including ByteDance, Alibaba, and Tencent. These sales were not previously included in the company's guidance due to regulatory hurdles imposed by U.S. administrations concerned about national security. Nvidia CEO Jensen Huang had negotiated with regulators to allow these sales while ceding 15% of chip revenue to the government. However, production capacity remains a challenge; Nvidia may only be able to fulfill between 5% and 10% of orders due to limited global manufacturing capabilities for Blackwell chips. Despite this news, Nvidia's stock has not seen significant gains recently amid investor concerns about AI demand sustainability and high valuation expectations.
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Topics: AI chips China sales export licenses Nvidia tariffs
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Part of the story Nvidia Struggles to Meet China's $35 Billion Chip Orders (2 articles)