China Tech Giants Hoard Nvidia AI Chips Before U.S. Export Curbs
Summary
Major Chinese tech giants like ByteDance, Alibaba, and Tencent hoarded billions of dollars' worth of Nvidia's H20 AI chips, designed for sale in China, in anticipation of U.S. export restrictions, aiming to stockpile around 1 million chips before the curbs were imposed in April.
Key Points
- China's top internet companies like ByteDance, Alibaba, and Tencent stockpiled billions of dollars' worth of Nvidia's H20 AI chips before the U.S. restricted shipments to China in April.
- The H20 GPU was designed for sale in China to comply with U.S. export controls, but these companies prepared for potential curbs on shipments.
- The companies aimed to snap up around 1 million H20 chips as they anticipated the latest U.S. restrictions on shipping the chips to China.