Nvidia Faces $35B Chip Order Backlog from Chinese Tech Giants

ByteDance, Alibaba, and Tencent have placed orders for over 3 million Nvidia RTX PRO 5500 chips, totaling more than $35 billion. Nvidia (NVDA) has informed customers it cannot guarantee fulfilling these orders, citing demand exceeding production capacity and U.S. export restrictions [1].

Key points:

• Chinese tech giants ordered more than double the 3 million RTX PRO 5500 cards Nvidia can produce globally in 2027.
• Nvidia warned partners they might receive only 5-10% of requested quantities.
• The RTX PRO 5500 is among the most powerful chips available to China under current U.S. controls, as advanced Blackwell and Hopper chips are restricted [1].

This highlights intense AI chip demand from China despite export curbs, signaling continued supply constraints for advanced AI hardware.