It is reported that major manufacturers such as Alibaba and Byte must explain their reasons to regulatory agencies such as the Ministry of Industry and Information Technology for purchasing Nvidia H20 chips!

According to foreign media reports, if Chinese Internet giants Alibaba, Byte, etc. want to purchase Nvidia H20 chips, they need to submit instructions to relevant regulatory agencies.Foreign media pointed out in reports that Chinese officials have required technology companies including Alibaba and ByteDance to prove the legitimacy of their orders for the U.S. Nvidia H20 artificial intelligence chip. This may be a new dilemma for Nvidia's business in China.

The report quoted three people familiar with the matter as saying that regulators including the Ministry of Industry and Information Technology have asked technology companies to explain why they need to order Nvidia H20 chips instead of using domestic alternatives.

Two of the people said that some technology companies, which were major buyers of Nvidia's H20 chips before sales in China were restricted, plan to reduce orders due to regulatory doubts.

"It's not banned, but it has become a politically incorrect practice," one Chinese data center operator said of buying Nvidia's H20 chips.

Alibaba and ByteDance did not respond to requests for comment as of press time.

It should be pointed out that when Nvidia H20 received permission to resume exports to China, Nvidia had not yet resolved the concerns of Chinese regulatory authorities about the safety of Nvidia chips.