China weighs allowing ByteDance, Alibaba to buy new Nvidia chips, report says

The Chinese government may permit major domestic companies such as ByteDance and Alibaba to acquire Nvidia's RTX PRO 5500 chips, according to a report by The Information. This potential approval comes after the Ministry of Industry and Information Technology reached out to these companies to inquire about their intentions to purchase the high-end professional computer chips. The ministry reportedly informed select companies that the government plans to grant approval for these purchases.

Industry insiders believe the RTX PRO 5500 chip could bypass US export restrictions, as stated by an Nvidia spokesperson. The spokesperson mentioned that US firms are hindered by a mix of outdated export controls, which apply to gaming products released nearly five years ago, and China's restrictions on US imports. However, Reuters could not independently verify the report, and Alibaba and ByteDance did not provide immediate comments to Reuters regarding the situation. Attempts to reach the Chinese government for comment were unsuccessful.