China Weighs Allowing ByteDance and Alibaba to Buy New Nvidia Chips as AI Demand Surges

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China Weighs Allowing ByteDance and Alibaba to Buy New Nvidia Chips as AI Demand Surges

China is considering allowing major technology companies including ByteDance and Alibaba to purchase Nvidia’s new RTX PRO 5500 processor, potentially opening another channel for US-made computing hardware to reach Chinese artificial-intelligence companies.

China’s Ministry of Industry and Information Technology has reportedly asked companies including ByteDance and Alibaba to provide details about their plans to purchase the RTX PRO 5500, including how many chips they want and how they intend to use them. The ministry has indicated to some companies that it plans to approve the purchases, although final quantities and conditions remain unclear.

The reported move comes as Chinese technology companies face rapidly growing demand for computing power to develop and operate AI models and services. The RTX PRO 5500 is a professional workstation GPU designed for demanding workloads, but its capabilities can also make it useful for running AI models.

ByteDance is reportedly considering an order of about 1 million RTX PRO 5500 chips, although the final figure could change depending on how many units Beijing approves and how many Nvidia can supply. Some potential buyers are considering putting the processors into servers used to run AI models for customers.

The reported interest could be significant for Nvidia. The company has faced increasingly complicated restrictions on sales of advanced computing products to China, while Beijing has also imposed its own limitations on some US technology as it encourages the development of domestic semiconductor alternatives.

The RTX PRO 5500 occupies a different position from Nvidia’s most powerful dedicated data-center AI processors. Some industry executives reportedly expect the new workstation chip to fall outside current US export restrictions, although that interpretation has not been officially confirmed by Washington.

Nvidia said US companies remain subject to both American export controls and China’s own restrictions on US imports. The company did not confirm that the reported Chinese purchases had been approved.

Alibaba and ByteDance did not immediately comment on the reports, while the Chinese government also had not publicly confirmed the reported approval process. The underlying report could not be independently verified.

The potential purchases come after a period of shifting rules surrounding Nvidia’s business in China. Earlier in 2026, Washington eased restrictions on certain Nvidia products, while Chinese authorities separately considered how much access domestic AI companies should have to foreign processors.

At the same time, Chinese technology companies are investing heavily in domestic alternatives. Companies such as Huawei are expanding their AI-chip capabilities, while Alibaba itself has been developing its own processors and expanding computing infrastructure. That means any renewed access to Nvidia hardware would exist alongside a broader push for greater domestic semiconductor capacity.

For Chinese AI developers, access to additional Nvidia processors could provide another source of computing capacity at a time when demand for AI infrastructure is accelerating.

For Nvidia, potential orders from major Chinese technology companies could help preserve its position in one of the world’s largest technology markets, even as geopolitical and regulatory restrictions continue to shape the company’s operations there.

The reported development therefore highlights the increasingly complicated intersection of AI demand, semiconductor competition and US-China technology policy.

The key issue now is whether Beijing formally approves the reported purchases, how many RTX PRO 5500 chips Chinese companies will be allowed to obtain and whether the arrangement becomes a broader pathway for Nvidia hardware to re-enter China’s rapidly expanding AI market.

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