NVIDIA's H20 AI accelerators are in tremendous demand in China, and it is now reported that the domestic markets are experiencing a shortage as big tech gobbles up all the units available.NVIDIA Once Again Experiences an "AI Gold Rush" In China; H20s Are Now Said To Be In Massive ShortageWell, with the US export restrictions, China was barred from accessing high-end AI hardware from the likes of NVIDIA and, as a replacement, was offered severely cut-down AI chips, like the H20. However, it seems like, despite the performance gap from mainstream options, NVIDIA's H20 AI GPU has been a favorite of Chinese tech giants, and according to MyDrivers, it is claimed that companies like ByteDance, Alibaba, and Tencent have placed orders for the H20 worth over $16 billion, which is a massive achievement for NVIDIA and its Chinese market venture.While DeepSeek did create an impact on NVIDIA's stock pricing, washing out hundreds of billions, it seems like the firm's AI models have managed to once again re-ignite the AI hype in China. It is reported that models like the DeepSeek R1 and V2 have managed to create a race between Chinese tech giants for model superiority, which is why they are acquiring NVIDIA's hardware in large quantities, and this has created a supply chain bottleneck once again, a situation which isn't easy to deal with for Team Green.Apart from this, it is also claimed that an upgraded version of the H20 AI accelerator is available to the Chinese markets, and it is equipped with a superior HBM technology, likely the HBM3E. This is one of the reasons why there's a surge in demand for H20, to the point that NVIDIA is anticipating a six-month delivery delay for many of the orders, given that TSMC's production lines are busy catering to Team Green's latest architectures, like Blackwell Ultra.But with the H20, Chinese tech firms always have a risk, given that the US could decide to ban the export of the AI accelerator anytime, which could cause an abrupt halt in production. And for NVIDIA, well, that would be a big hit to its AI/DC revenue from China.Deal of the Day