After US trade restrictions stopped Nvidia from exporting its advanced AI chips to China, the company responded by developing the H20 GPU, a modified version which complies with the regulations by offering lower performance levels while still meeting the AI processing demands of Chinese firms.
Although there is a thriving black market for Nvidia’s high-end GPUs, TikTok’s parent company ByteDance, already under intense scrutiny in the US, cannot afford the legal and reputational risks of engaging in such illegal markets, and so has been purchasing Nvidia’s lower-capability processors for its AI needs. ByteDance is reportedly the largest buyer of H20s in China, having spent over $2 billion on the hardware in 2024 alone.
