China's Big Tech to Receive Only 1% of 6 Million Nvidia Chips Ordered

China's big tech firms are expected to receive only 1% of the 6 million Nvidia chips they ordered, Bloomberg reported on Monday, local time, citing multiple sources.

Chinese AI and cloud (internet server rental service) companies, including Alibaba, Tencent, and ByteDance, ordered roughly 6 million units of the 'RTX Pro 5500' chip. With each unit priced above $11,000 (about 14.73 million won), the total deal amounts to around $70 billion (about 93.7 trillion won). According to sources, the supply these companies will receive over the next four months will amount to only tens of thousands of units.

Bloomberg reported that the shortage of RTX Pro 5500 chips is expected to persist for the time being, as Nvidia and Taiwan's TSMC are concentrating their production capacity on next-generation products such as 'Rubin.'

While the U.S. government has banned the sale of Nvidia's most advanced chips to China, the RTX Pro 5500 is not classified as cutting-edge, so transactions themselves have not been blocked. An Nvidia spokesperson, without specifying supply volumes, said, "U.S. export controls that even regulate gaming products launched nearly five years ago, combined with the Chinese government's import restrictions, are constraining U.S. companies."