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China Weighs Letting Alibaba and ByteDance Import Millions More Nvidia Chips

China's Ministry of Industry and Information Technology has asked Alibaba and ByteDance to detail plans to buy Nvidia's RTX Pro 5500 chips, as Beijing considers allowing potentially millions more banned chips into the country over the next year, Ars Technica reported.

The request involves chips described as gaming chips, but China asked the companies to detail how they plan to use them, according to the report. The expectation is that the chips could be put into servers to help power the country's most in-demand AI models.

The potential opening for Nvidia comes after a recent summit between U.S. President Donald Trump and Chinese President Xi Jinping that did little to change the world of AI regulation, Ars Technica reported. Export controls were not discussed, and neither country appeared interested in making concessions.

An already tenuous trade truce was temporarily extended for just two months. Analysts expect that looming U.S. controls, which could drop soon, could easily end the truce and trigger China to retaliate by cutting off exports of rare earths, according to Ars Technica.

Nvidia appeared to notch a big win in the background of these shaky talks, Ars Technica reported. China is currently mulling relaxing controls and allowing some of its biggest AI firms to import perhaps millions more of Nvidia's banned chips over the next year. Ars Technica also reported that experts worry about Nvidia's AI chip sales in China and its influence over Trump.

Editor's Summary

China is considering allowing Alibaba and ByteDance to import more Nvidia RTX Pro 5500 chips, with the Ministry of Industry and Information Technology asking the companies for purchase plans. The potential move would benefit Nvidia and could help power China's AI models, but it comes amid a fragile U.S.-China trade truce and warnings that new U.S. controls could trigger retaliation over rare earths.