Additional reporting confirms Beijing is considering allowing select Chinese companies to buy advanced Nvidia chips as domestic AI firms outpace their chip supply.
Following·Day 4·first covered 28 Sep 2026·2 sources
China Weighs Letting Alibaba, ByteDance Import Nvidia AI Chips
The gist
If China relaxes its import restrictions, major Chinese AI firms could gain access to significantly more Nvidia compute capacity despite ongoing US export controls. Analysts warn that new US controls could prompt China to retaliate by cutting off rare earth exports.
The full picture
China is reportedly considering permitting domestic AI firms, including Alibaba and ByteDance, to import large quantities of Nvidia RTX Pro 5500 chips for use in AI servers. The RTX Pro 5500 is technically a gaming chip, but China expects firms to deploy it in servers to power AI models. China's Ministry of Industry and Information Technology asked Alibaba and ByteDance to submit plans for purchasing the chips. The consideration comes as Chinese AI firms are deploying products and services faster than they can source chips to run them, and as domestic chip researchers have made progress but cannot yet mass-produce advanced chips without restricted lithography tools. Nvidia's market share in China fell after US export controls and Chinese government restrictions. The Trump-Xi summit did not address AI export controls, with neither side making concessions, and the US-China trade truce was extended for only two months, leaving chip export controls unresolved.
How it developed
Reports emerge that China's Ministry of Industry and Information Technology asked Alibaba and ByteDance to submit plans for purchasing Nvidia RTX Pro 5500 chips.
Sources
Semafor Technology
- 🟡 The hand of AI
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