NVIDIA H20 AI Accelerators Experience Shortage in China Due to High Demand from DeepSeek

NVIDIA’s exclusive H20 AI accelerators are currently facing significant shortages in the Chinese market, driven by an unprecedented demand for enhanced computing power.

Soaring Demand for NVIDIA’s H20 AI GPUs Amidst AI Boom in China

China is making significant strides in the artificial intelligence sector, as recent advancements have fueled a surge in demand for AI technologies. Reports indicate that major domestic players, including Tencent and ByteDance, are actively stockpiling NVIDIA’s AI accelerators. According to a report from MyDrivers, the H20 AI GPUs have become immensely popular among Chinese consumers, quickly positioning themselves as the preferred choice following the success of the Hopper H100 AI GPUs.

Notably, Tencent has reportedly acquired a substantial quantity of H20 AI accelerators from NVIDIA, amounting to tens of billions of yuan. This strategic acquisition aligns with Tencent’s efforts to embed AI capabilities into their consumer applications, such as Tencent Docs and Tencent Maps. Furthermore, the launch of new AI models by DeepSeek has intensified the competition among companies seeking to integrate large language models (LLMs) into their localized AI systems, thereby amplifying the demand for advanced computing resources.

NVIDIA To Generate A Whopping $12 Billion From China Despite Restrictions As H20 AI GPU Sees Massive Demand 1

Chinese firms have become vital contributors to NVIDIA’s revenue stream, necessitating the company’s ongoing commitment to the domestic market. Recent research by Omdia reveals that Tencent and ByteDance have collectively acquired approximately 230, 000 NVIDIA AI chips in 2024, making them significant players in the AI market, only surpassed by Microsoft. This data underscores the tremendous demand for computational power in China and highlights NVIDIA’s crucial role in addressing it.

The H20 AI accelerators are priced around 100, 000 yuan per unit, which is considered competitive compared to domestic alternatives like the Ascend 910B. As the Ascend 910B is often priced higher, many Chinese companies are opting for NVIDIA’s offerings, primarily due to the robustness of its software ecosystem.

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