BEIJING, September 28: China is considering allowing major technology companies including ByteDance and Alibaba to purchase Nvidia’s newly introduced RTX PRO 5500 processors, potentially marking a shift in Beijing’s approach to the use of advanced foreign chips by domestic artificial intelligence companies.
Chinese authorities have asked major technology companies to provide details about how many RTX PRO 5500 chips they want to purchase and how they intend to use them. Some companies have reportedly been informed that purchases could eventually receive government approval.
China Reviews Nvidia Chip Purchases
China’s Ministry of Industry and Information Technology has recently sought information from technology companies interested in purchasing Nvidia’s RTX PRO 5500 processors.
Companies have been asked to disclose expected order volumes and intended applications before authorities decide whether purchases should be permitted.
No final approval timetable has yet been announced.
ByteDance and Alibaba Among Companies Seeking Chips
ByteDance and Alibaba are among the major Chinese technology groups interested in obtaining the new Nvidia processors.
Both companies are investing heavily in artificial intelligence models, cloud infrastructure and AI-powered services, creating significant demand for computing hardware.
Access to additional Nvidia processors could help them expand the computing capacity available for running advanced AI systems.
ByteDance Could Seek Around One Million Chips
ByteDance is reportedly considering purchasing approximately one million RTX PRO 5500 processors.
The final order could depend on how many chips Chinese authorities permit the company to buy and how much supply Nvidia can make available.
Such an order would represent substantial demand for a processor that has only recently been introduced.
RTX PRO 5500 Designed for High-End Computers
The RTX PRO 5500 is primarily designed for powerful professional workstations used by engineers, designers and other technical users.
It is not positioned as Nvidia’s most advanced data-centre AI processor.
However, Chinese companies are exploring ways to deploy groups of these processors in servers to run artificial intelligence models and other computationally intensive applications.
Companies Could Combine Multiple Chips in Servers
Some potential buyers are considering installing multiple RTX PRO 5500 processors inside individual servers.
A configuration involving eight processors per server could allow the chips to work together when running larger artificial intelligence models.
This could make workstation-class hardware useful for AI inference even though it was not originally designed as Nvidia’s flagship data-centre product.
Nvidia Could Begin Shipments in December
Nvidia is reportedly preparing to begin shipping RTX PRO 5500 processors toward the end of December 2026.
The company could initially target shipments of approximately 500,000 chips per quarter to China, depending on regulatory approvals and customer demand.
At that production rate, a potential one-million-chip ByteDance order alone could require multiple quarters to fulfil.
New Chip Could Cost Around $13,000 in China
The RTX PRO 5500 is expected to sell in China for approximately 85,000 to 90,000 yuan, equivalent to roughly $13,000 per processor.
That places the product in a similar price range to some of the AI processors being developed by Chinese semiconductor companies.
Demand could remain strong because Chinese AI developers continue to face shortages of high-performance computing hardware.
US Export Controls Remain Important
Nvidia’s access to the Chinese market has been restricted by US export controls covering advanced artificial intelligence processors.
Washington has imposed limits on the sale of certain high-performance chips to China over concerns that the technology could strengthen Chinese AI and military capabilities.
The RTX PRO 5500 is less powerful than Nvidia’s flagship data-centre AI processors, and some industry participants expect it may fall outside existing US restrictions.
However, regulatory treatment could still determine whether large-scale exports are possible.
China Has Also Restricted Nvidia Purchases
Nvidia faces restrictions not only from the United States but also from Chinese authorities.
Beijing has encouraged domestic technology companies to adopt locally developed semiconductors as part of a broader effort to reduce dependence on foreign technology.
Chinese regulators have previously limited purchases of some Nvidia products while raising concerns over security and supporting domestic chip manufacturers.
Huawei Expands Domestic AI Chip Production
China’s domestic semiconductor industry has been expanding rapidly as companies attempt to provide alternatives to Nvidia.
Huawei has emerged as one of the leading Chinese suppliers of artificial intelligence processors through its Ascend product line.
However, rapid growth in AI applications has created demand that domestic manufacturers alone may struggle to satisfy.
This computing shortage is one reason Chinese authorities may be reconsidering restrictions on selected Nvidia products.
Alibaba Developing Its Own AI Chips
Alibaba is simultaneously expanding its domestic semiconductor capabilities.
The company recently unveiled its Zhenwu V900 AI processor, which it plans to put into mass production in 2027.
Alibaba is also developing significantly larger artificial intelligence models and expanding its global data-centre infrastructure.
Purchasing Nvidia hardware would therefore complement rather than necessarily replace Alibaba’s efforts to develop its own processors.
Nvidia Seeks to Regain Ground in China
China was previously one of Nvidia’s most important markets for advanced AI processors.
Increasing restrictions from both Washington and Beijing have sharply reduced the company’s ability to sell its highest-performance chips to Chinese customers.
Approval of RTX PRO 5500 purchases could provide Nvidia with an opportunity to rebuild part of its business in the Chinese AI computing market.
Nvidia Faces Competition From Chinese Chipmakers
Domestic semiconductor companies have gained market share as Nvidia’s access to China has narrowed.
Chinese technology companies are increasingly testing processors from Huawei and other local suppliers for training and running artificial intelligence models.
Nvidia therefore faces growing competition even if Chinese authorities allow renewed purchases of some of its products.
Final Approval Still Pending
China has not yet publicly announced final approval allowing ByteDance, Alibaba or other companies to proceed with large-scale purchases of RTX PRO 5500 processors.
Important questions remain over when approvals could be issued, how many chips each company would be permitted to purchase and what conditions might apply.
The potential decision will be closely watched because it could influence the balance between China’s push for semiconductor self-reliance and the immediate computing requirements of its rapidly expanding artificial intelligence industry.
Source – Reuters / The Information Reuters
Supreme News Network
