# ByteDance, Alibaba, and Tencent Order $35 Billion in Nvidia Chips Chinese tech giants rush to secure RTX PRO 5500 chips amid US export restrictions. - **Source:** [Technology | The Indian Express](https://indianexpress.com) - **Published:** 2026-10-21 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/f6b2d22e-dc9c-45f4-837d-5179007f7b72 ## Massive Procurement Strategy ByteDance, Alibaba, and Tencent have collectively placed orders for over 3 million Nvidia RTX PRO 5500 graphics cards. With a unit price of approximately $11,400, the total valuation of these orders exceeds $35 billion. This move highlights a desperate scramble to secure hardware that remains compliant with current US export regulations. ## Supply Constraints and Shortages Nvidia has informed its partners that fulfilling these orders is unlikely due to global demand far exceeding planned production capacity. The company indicated it can produce no more than 3 million units globally in 2027, while total Chinese orders have already surpassed 6 million. Customers may receive only 5% to 10% of requests. ## Shift to Workstation Hardware The RTX PRO 5500 is a workstation-grade chip, distinct from the advanced AI processors used in massive data-center clusters. While less powerful than the restricted B300 or H200 models, it represents one of the most capable Nvidia options currently available to Chinese buyers. Firms intend to use these for AI inference tasks. ## Evolving Market Sentiment Previously, Chinese tech firms showed little interest in reduced-capability chips like the RTX 6000D, hoping for access to more powerful processors. However, as US restrictions persisted and computing capacity remained scarce, the RTX PRO 5500 became a necessary substitute. The market price for the now-discontinued RTX 6000D has since doubled in China. ## Manufacturing and Capacity Priorities Nvidia’s inability to guarantee full delivery stems from its strategic manufacturing focus. Starting in 2027, the company plans to prioritize Taiwan Semiconductor Manufacturing Co capacity for its next-generation Rubin platform. Consequently, production for workstation cards like the RTX PRO 5500 will be limited, with early samples expected in December and commercial deliveries in 2027. ## Impact of Export Controls US export restrictions have significantly tightened computing-power supplies within China, the world's second-largest economy. While Beijing encourages the use of domestic chips, local manufacturers like Huawei struggle to match the performance of leading American products. This gap persists partly due to separate restrictions limiting access to essential foreign semiconductor manufacturing equipment. ## Inference Over Training Needs Chinese companies are targeting these workstation cards primarily for AI inference, which involves running trained models to generate chatbot responses. Unlike training models on massive datasets, inference requires less raw computing power. This tactical shift allows firms to continue deploying AI across various industries despite being barred from the most advanced data-center hardware. ## Broader Industry Implications The surge in demand underscores the ongoing appetite for Nvidia hardware despite Washington's curbs. While Jensen Huang previously noted that restrictions reduced Nvidia's China market share to near zero, the demand for the RTX PRO 5500 suggests a sizeable potential market remains. Companies like Tansun Technology are already securing supply despite potential delivery delays. ## Sources covering this story - https://indianexpress.com/article/technology/tech-news-technology/bytedance-alibaba-tencent-place-over-35-billion-worth-of-nvidia-chip-orders-10930221/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._