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China’s tech giants drop $35 billion on export-compliant Nvidia RTX Pro 5500 workstation GPU orders to power AI ambitions, according to reports
Surging demand for Nvidia's chips in China isn't stopping
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Chinese technology giants ByteDance, Alibaba and Tencent have reportedly spent over $35 billion on orders for more than 3 million Nvidia RTX Pro 5500 workstation GPUs. The huge order for the RTX Pro 5500, fully compliant with U.S. restrictions on exports of AI-capable GPUs to China, is reportedly far beyond Nvidia's planned production for this card. As a result, Nvidia has, according to sources who spoke to Reuters, told its customers that it isn't in a position to fill the orders as it far outstrips its planned production for this GPU.
The RTX Pro 5500 is a workstation GPU with the same number of CUDA cores as its flagship RTX 5090 GPU, but with 84GB of GDDR7 memory attached, making it a good option for AI applications. The RTX Pro 5500 is a popular choice at the moment for Chinese buyers as exporting it isn't currently restricted by the U.S. government. It's less powerful than the H200 and B300, Nvidia's AI-focused GPUs for the enterprise market, but those GPUs remain either banned or heavily restricted. As China competes with the U.S. in the race to produce newer, better AI models, GPUs like the RTX Pro 5500 continue to be indispensable.
The report reveals some interesting data about the Chinese tech firms orders. Two of its sources revealed that the cards are priced at around $11,400 each, reaching a total order value of $35 billion. Meanwhile, another source suggested that Nvidia has informed its partners that it may only be able to deliver enough cards to meet between 5% and 10% of the demand. Meanwhile, Nvidia is reportedly in a position to only produce 3 million RTX Pro 5500 cards globally in 2027.
Neither Nvidia nor the three Chinese companies have confirmed any of this on the record. However, an Nvidia spokesman told Reuters that demand from the Chinese market for these chips has faced "unprecedented growth since 2022" since export restrictions were introduced. "U.S. firms continue to be restricted by a combination of outdated U.S. export controls, which cover gaming products released nearly half a decade ago, and China's own limits on U.S. imports."
While trade hostility between the U.S. and China shows no sign of abating, demand for Nvidia's GPUs hasn't slowed down, despite U.S. attempts to restrict Nvidia's ability to export to China. Meanwhile, export-restricted Nvidia AI chips continue to reach China despite the restrictions, bypassing the Trump administration's efforts in the process.
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Ben Stockton is a deals writer at Tom’s Hardware. He's been writing about technology since 2018, with bylines at PCGamesN, How-To Geek, and Tom’s Guide, among others. When he’s not hunting down the best bargains, he’s busy tinkering with his homelab or watching old Star Trek episodes.