Fanny Potkin and Che Pan of Reuters report that Chinese companies, including Tencent and Alibaba, have increased orders for Nvidia’s H20 AI chip due to rising demand for DeepSeek’s efficient AI models. They write:
Chinese companies are ramping up orders for Nvidia’s (NVDA) H20 artificial intelligence chip due to booming demand for DeepSeek’s low-cost AI models, six people familiar with the matter said.
The surge in orders, which is being reported for the first time by Reuters, underlines Nvidia’s dominance of the market and could help alleviate concerns that DeepSeek might cause a slide in AI chip demand. […]
Smaller companies in sectors like healthcare and education are also purchasing AI servers equipped with DeepSeek models and Nvidia H20 chips, said a source at one of China’s largest server makers. Previously only deep-pocketed financial and telecoms firms bought servers with AI computing systems, the source added.
U.S. President Donald Trump’s administration is looking at imposing restrictions on the sale of the H20 chip to China, Reuters has reported. While the threat of further controls could be a factor in the jump in orders, the sources cited DeepSeek as the reason. […]
Numerous Chinese companies have announced plans to use DeepSeek’s models. Among them are Tencent, which has said it will beta test integrating the models into its highly popular WeChat messaging app, and automaker Great Wall which has integrated DeepSeek’s model into its connected vehicle system.
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