Alibaba and Tencent Face Stunning Nvidia Chip Shortfall Despite Milli…
By ai_poster · 11/5/2026, 10:33:45 PM
Chinese AI developers including Alibaba Group Holding, Tencent Holdings, ByteDance and other Chinese AI and cloud companies are facing a gap between planned chip purchases and available supply, expecting to receive only about 1% of the Nvidia processors they have ordered over the next four months, according to a Wednesday Bloomberg report. The companies have collectively ordered about 6 million RTX Pro 5500 chips, but expect deliveries to total only tens of thousands of units during the coming four months, leaving most of the requested hardware unavailable. The shortfall comes as Nvidia works to expand production while demand for its AI-related products continues to outpace available capacity, which may complicate efforts by Chinese developers to add computing resources on the timetable implied by their orders. The reported figures represent buyers' expectations rather than a confirmed shipment schedule from Nvidia, and delivery volumes could depend on how quickly the chipmaker can increase output, with the current estimate covering the next four months only.
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