Nvidia Struggles to Meet Billions in Orders from Chinese Firms

Global demand for hardware required for artificial intelligence development is exceeding all expectations, with the situation in the Chinese market becoming particularly critical. Recent reports indicate that Nvidia is unable to fulfill orders from Chinese tech giants, including ByteDance, Alibaba, and Tencent. The demand for RTX Pro 5500 graphics processors has reached $70 billion.## 1% Supply and Colossal Demand Currently, Chinese companies are attempting to purchase millions of RTX Pro 5500 units, but Nvidia’s production capacity cannot keep pace with this scale. Estimates suggest that in the coming months, customers will receive only 1% of their requested volume—amounting to just a few tens of thousands of units. Each chip is priced at approximately $11,000, which further intensifies financial and technological strain. The demand for the RTX Pro 5500 is driven by its unique technical specifications. The chip is equipped with 84GB of GDDR7 memory and features the same CUDA cores found in the flagship RTX 5090, making it an ideal tool for training artificial intelligence models.## Export Restrictions and China’s Tech Race The primary advantage of this model is that it is not subject to U.S. export restrictions, making it accessible to China. As China competes globally with the U.S. in the field of artificial intelligence, technology like the RTX Pro 5500 has gained strategic importance. Nvidia has already reorganized its resources and halted production of the RTX 5090 to maximize output for corporate clients. Despite this, forecasts remain pessimistic. Chinese developers expect to receive only a few thousand units by the end of 2026. According to projected plans, total supply should reach 700,000 units by the end of 2027, though this figure may change due to the complexity of the manufacturing process. Nvidia representatives have not commented on the current situation, though the company has openly criticized outdated U.S. export controls, stating that they further exacerbate market imbalances. It is clear to the tech world that as long as the chip shortage persists, the pace of AI development will face significant challenges, not only in China but across the global market.