Chinese companies are increasingly placing more orders for Nvidia's (NASDAQ:NVDA) H20 artificial intelligence chip amid rising demand for DeepSeek's (DEEPSEEK) low-cost AI models, Reuters reported on Tuesday citing people familiar with the matter.

Chinese tech giants Tencent, Alibaba, and ByteDance have significantly increased orders for Nvidia's H20 AI chips, as the rise of DeepSeek's low-cost AI models drives a surge in demand for AI computing power.

Some of Europe's most popular AI-linked stocks fell for a second day on Tuesday, after an analyst note late last week that flagged a possible slowdown by Microsoft on data centre leasing knocked sentiment ahead of make-or-break results from Nvidia .

Alibaba, ByteDance, and Tencent are driving demand for NVIDIA H20 chips, fueling China’s AI boom despite U.S. export restrictions.

BABA-W (09988.HK) and ByteDance are increasing their orders for Nvidia (NVDA.US)'s H20 AI chip on soaring demand for DeepSeek's low-cost AI models, Reuters quoted sources as saying. The H20 chip is designed specifically for the China market in response to US export controls,

Nvidia’s H20 chips are in high demand in China—indicating that DeepSeek's more efficient AI doesn’t mean lower chip demand.

Chinese tech giants Tencent, Alibaba, and ByteDance are ramping up orders for Nvidias (NASDAQ: NVDA) H20 AI chip due to soaring demand for DeepSeeks cost-efficient AI models, sources told Reuters. This surge