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

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

China is considering allowing major technology companies including ByteDance and Alibaba to purchase a new Nvidia processor, potentially easing Beijing’s restrictions on US-made chips as Chinese AI companies face growing demand for computing power.

China’s Ministry of Industry and Information Technology has reportedly asked companies including ByteDance and Alibaba to submit details of their planned purchases of Nvidia’s 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 the timing, quantities and final conditions remain unclear.

The RTX PRO 5500 is a high-performance workstation chip introduced by Nvidia in September. Unlike the company’s most powerful data-center processors, it is designed primarily for professional computers used by engineers, designers and other demanding applications. Its architecture nevertheless gives it capabilities that can be useful for running artificial-intelligence models.

The potential approval is significant because Chinese technology companies are facing a shortage of computing capacity as they expand AI products and services. ByteDance is reportedly considering an order of about 1 million RTX PRO 5500 chips, although the final amount could depend on how many Beijing permits the company to purchase and how many Nvidia can supply.

Some potential buyers are reportedly considering installing the chips in servers to run AI models for customers. A standard server configuration could use eight RTX PRO 5500 processors, allowing multiple chips to work together on larger workloads.

Nvidia plans to begin shipping the RTX PRO 5500 in late December and is targeting production of roughly 500,000 units per quarter for the Chinese market, according to people familiar with the company’s plans. The chip is reportedly selling in China for about 85,000 to 90,000 yuan, or roughly US$13,000.

The possible opening for the RTX PRO 5500 comes after years of restrictions affecting Nvidia’s business in China. Washington has imposed export controls on advanced computing technology, while Beijing has also restricted some Nvidia products as it promotes domestic semiconductor companies and raises concerns over technology security. Nvidia has denied suggestions that its chips could contain mechanisms allowing unauthorized access to data.

The two governments have taken different approaches to Nvidia’s products. Earlier in 2026, China was reported to be considering limited purchases of Nvidia’s H200 chips by companies including Alibaba, ByteDance and DeepSeek, but the quantities remained subject to Beijing’s approval.

The RTX PRO 5500 is not one of Nvidia’s highest-end AI data-center processors. It lacks some of the specialized high-speed interconnect and memory capabilities found in Nvidia’s dedicated AI chips. That could make it easier to fit within US export rules, although the US government has not publicly confirmed whether the product will be exempt from restrictions.

Nvidia said US companies continue to face restrictions from both Washington’s export controls and China’s own limits on US imports. Alibaba and ByteDance had not immediately commented on the reported discussions, while Reuters said it was unable to independently verify the report or immediately obtain comment from Chinese authorities.

For Nvidia, access to Chinese buyers would provide another potential source of demand at a time when the company is navigating increasingly complicated technology rules between the world’s two largest economies.

For Beijing, the issue reflects a difficult balance between supporting the computing needs of domestic AI developers and strengthening China’s semiconductor self-sufficiency. Chinese companies increasingly need large amounts of computing power, while domestic chipmakers such as Huawei are simultaneously expanding their role in the country’s AI hardware market.

The possible approval of RTX PRO 5500 purchases therefore represents more than a single chip transaction. It could provide a closely watched test of how China manages access to foreign AI hardware while continuing to build its domestic semiconductor industry.

The key question now is how many Nvidia chips Beijing will actually approve, and whether the RTX PRO 5500 becomes a broader channel for US technology to reach China’s rapidly expanding AI sector.

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