MEDIA - Tencent China recently purchased H20 chips worth tens of billions of yuan from Nvidia -- local media
Recently, Tencent purchased H20 chips from Nvidia, with an order amount of approximately several billion yuan. This move is to meet the demand for WeChat's integration with DeepSeek, resulting in a short-term supply shortage of H20 chips. The H20 chips are used for developing AI software, designed to comply with U.S. export restrictions on China. Market analysis believes this will accelerate China's domestic substitution process in the AI chip field
Chinese local media - Financial Magazine reported on Thursday that Tencent (0700.HK) recently purchased a batch of new chips from NVIDIA (NVDA.O). To ensure timely delivery of orders to Tencent, there is a short-term supply shortage of NVIDIA's H20 chips; a person close to NVIDIA stated that Tencent's order amounts to several billion yuan.
The report also cited a person from Alibaba Cloud who said that, to his knowledge, Tencent is purchasing a large number of H20 chips in the short term mainly to meet the demand for WeChat's integration with DeepSeek.
The H20 chip can be used to develop and run artificial intelligence (AI) software, and its design aims to comply with existing U.S. export restrictions to China. In early February last year, sources familiar with the situation indicated that NVIDIA had begun accepting orders for the China-specific version of the H20 AI chip from Chinese distributors.
However, Reuters reported in January this year, citing sources, that the Trump administration is considering tightening sales restrictions on NVIDIA's H20 chips designed specifically for the Chinese market. Market analysts pointed out that this could further accelerate China's domestic substitution process in the field of artificial intelligence chips.
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– Note: Reuters has not verified the above information and does not guarantee its accuracy. (End)
(Reported by Wang Zhenzhen; Edited by Lin Gaoli)
