ByteDance, Alibaba and Tencent order $35bn of Nvidia chips, Reuters reports

Anthropic, the company behind Claude, is in talks with Nscale to expand a compute deal by $45 billion, potentially reaching $90 billion. Both companies are preparing for IPOs, with Anthropic targeting a valuation of $1.5 trillion to $2 trillion. Anthropic's revenue grew to $4.6 billion in 2025, with Q3 sales at $16.8 billion, but it reported an operating loss of over $8 billion.

Amazon (AMZN) is purchasing $5B in Nvidia (NVDA) GPUs for U.S. data centers before power is available, with plans to buy $3B more monthly. The 'Early Rack Receipt' program aims to secure AI chips amid grid constraints, but may strain liquidity. Amazon expects $220B in capex this year, turning negative free cash flow last quarter.

Amazon is purchasing billions in Nvidia AI systems, including $5 billion in GB300 server racks, under a new Early Rack Receipt process, despite power shortages delaying deployment. AWS projects $3 billion more in monthly orders. Dark GPUs, where purchased AI chips remain idle, are a growing issue. Amazon's capital expenditures are expected to reach $220 billion this year, with free cash flow turning negative last quarter. The company defends its staging practices as standard.

Nvidia (NASDAQ:NVDA) reportedly secured $35 billion in chip orders from Chinese firms like ByteDance, Alibaba, and Tencent, according to Reuters. These orders were not included in Nvidia's previous guidance. The company may face production constraints, potentially fulfilling only 5% to 10% of the orders. Nvidia's stock has faced pressure despite strong earnings, with investors concerned about AI demand and regulatory hurdles.

ByteDance, Alibaba, and Tencent have reportedly ordered over 3 million Nvidia RTX PRO 5500 graphics cards, valued at over $35 billion, to circumvent U.S. AI chip restrictions. Nvidia warns it may only fulfill 5-10% of the demand, with deliveries starting in early 2027. The cards are intended for AI inference tasks.

ByteDance, Alibaba, and Tencent ordered over 3 million Nvidia RTX PRO 5500 chips, totaling over $35 billion. Nvidia may only fulfill 5-10% due to high demand and production limits. The chips are less powerful but comply with U.S. export restrictions. Nvidia's spokesperson cited growth in Chinese workstation chip producers since 2022.