Alibaba, ByteDance, and Tencent are driving demand for NVIDIA H20 chips, fueling China’s AI boom despite U.S. export restrictions.

Demand for Nvidia's pricey artificial intelligence chips will be in focus when the company reports results on Wednesday as investors doubt the hefty spending on the technology after low-cost AI models from China's DeepSeek rattled the industry.

Nvidia’s H20 chips are in high demand in China—indicating that DeepSeek's more efficient AI doesn’t mean lower chip demand.

Chinese companies are ramping up orders for Nvidia's (NVDA.O), opens new tab H20 artificial intelligence chip due to booming demand for DeepSeek's low-cost AI models, six people familiar with the matter said.

Chinese companies are increasingly placing more orders for Nvidia's (NASDAQ:NVDA) H20 artificial intelligence chip amid rising demand for DeepSeek's (DEEPSEEK) low-cost AI models, Reuters reported on Tuesday citing people familiar with the matter.

Tencent, Alibaba and ByteDance are said to have significantly increased orders of the H20 since DeepSeek gained global attention.