China's curbs on tungsten used in drill bits squeeze AI supply chain

Nvidia is unable to fulfill even a small portion of a $70 billion GPU order from Chinese technology firms, according to a recent report. Only tens of thousands—or roughly 1%—of the RTX Pro 5500 workstation GPUs will be delivered in the coming months, according to unnamed sources cited by Bloomberg. This shortfall is due to supply constraints that have hindered the delivery of the highly sought-after GPUs despite a massive demand.

The RTX Pro 5500, known for its impressive performance and unique export-friendly status, is in high demand due to its ability to handle AI workloads. Unlike other AI-focused GPUs, the RTX Pro 5500 does not face export restrictions, making it an attractive option for Chinese firms. Chinese companies have reportedly invested a staggering $70 billion in orders for over 3 million of these GPUs, far exceeding Nvidia's production capacity.

Nvidia has reportedly shifted its focus from the RTX 5090 to cater to its AI enterprise base, leading to the halt in RTX 5090 production. Chinese developers anticipate receiving a batch of several thousand RTX Pro 5500 GPUs by the end of 2026, with a total of 700,000 expected by the end of 2027 as production ramps up. In response to Bloomberg, an Nvidia spokesperson declined to comment on shipment numbers but criticized U.S. export controls, attributing the shipping limitations to outdated export controls and China's own restrictions on U.S. imports.