Chinese Tech Giants’ $35 Billion Nvidia Order Highlights Shortcomings of Domestic Alternatives

Three of China’s largest tech companies have reportedly placed orders for over $35 billion worth of Nvidia graphics cards. This massive procurement action reveals that despite Huawei’s efforts to develop domestic alternatives, Chinese tech firms still heavily rely on American technology. According to Reuters, ByteDance, Alibaba, and Tencent have purchased over 3 million units of Nvidia’s new RTX PRO 5500 graphics cards. Due to the demand from Chinese companies far exceeding Nvidia’s original production capacity, the company has informed customers that final deliveries may only account for 5% to 10% of the orders. The reported $35 billion is the total…