Beijing, September 4, 2025 — Leading Chinese technology firms including Alibaba, ByteDance, and Tencent remain committed to acquiring Nvidia’s artificial intelligence (AI) chips, despite mounting pressure from Beijing regulators to reduce reliance on U.S.-made semiconductors. Sources familiar with procurement discussions revealed that these companies are actively seeking reassurance that their orders for Nvidia’s H20 model are being processed, and are closely monitoring the development of a more powerful chip, tentatively named the B30A.
The H20 chip, a downgraded version of Nvidia’s flagship AI processors, was specifically designed to comply with U.S. export restrictions. After receiving renewed export approval in July, Nvidia resumed limited sales of the H20 to China. However, Chinese authorities have since summoned several firms to explain their purchases, citing concerns over data security and potential information risks.
Despite these inquiries, no formal ban has been issued, and demand remains strong. Industry insiders attribute this to limited domestic alternatives and the superior performance of Nvidia’s chips compared to local offerings from companies such as Huawei and Cambricon.
The B30A chip, based on Nvidia’s Blackwell architecture, is expected to be up to six times more powerful than the H20 and may retail for nearly double its price—between $20,000 and $24,000 per unit. Chinese firms reportedly view this pricing as reasonable given the performance gains.
The geopolitical tension surrounding advanced chip sales has become a focal point in the broader U.S.-China tech rivalry. While the U.S. government has eased some restrictions, it has also struck a deal requiring Nvidia to remit 15% of its H20 revenue to the U.S. Treasury. Nvidia executives have confirmed that export licenses have been granted, but shipments are pending resolution of compliance and revenue-sharing terms.
Nvidia, which derived 13% of its revenue from China in the previous fiscal year, has issued a cautious sales forecast that excludes potential earnings from the Chinese market. The company’s stock has declined by 6% since the announcement, reflecting investor uncertainty over its future in the region.
As China continues its push for semiconductor self-sufficiency, the persistence of demand for Nvidia chips underscores the challenges domestic firms face in matching global standards. The situation remains fluid, with both governments navigating a complex landscape of trade, innovation, and national security.
