Chinese online retailers have purchased $5bn worth of NVIDIA A800 and H800 chips due to the possible strengthening of US sanctions

Large Chinese online retailers have already decided to cover their needs for NVIDIA chips by the end of 2024. The reason was the possible strengthening of sanctions from the United States.

Here's What We Know

The US authorities have banned NVIDIA from exporting A100 and H100 graphics chips to China. "Green" company found a way out, by creating less productive GPUs A800 and H800 respectively. Chinese internet platforms have spent billions of dollars in anticipation of new sanctions.

Customers have paid $5bn upfront to cover the need for the A800 and H800 by the end of next year. Specifically, Baidu, ByteDance, Tencent and Alibaba spent $1bn to purchase 100,000 A800 units, with deliveries to start in 2024.

ByteDance has bought 10,000 NVIDIA chips and wants at least another 700,000 units next year for $700 million. The companies declined to comment on the upfront payments, while NVIDIA said such a payment structure is normal practice.

Source: Financial Times