China may let Alibaba, ByteDance buy new Nvidia chips, The Information reports

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Any easing in China's stance on Nvidia purchases would be read as a modest positive for Nvidia and the broader AI supply chain, though the report is unverified and the chip in question, the RTX Pro 5500, is a professional workstation part rather than Nvidia's flagship AI accelerator, limiting the scale of the read-through. The first market reaction will likely show up not in cash equities, which are closed, but in US index futures: CME Globex reopens for the new week at 6pm US Eastern time (2200 GMT), and that reopen is typically the first point where a headline like this, alongside the Hormuz and Iran developments, gets priced into equity index futures ahead of Monday's cash session. Confirmation or denial of the report, either from Beijing or from Nvidia, would be the key catalyst for a bigger move either way.---China may be preparing to let Alibaba and ByteDance buy Nvidia's newest high-end chip, an unverified report says, in a move some industry executives think could sidestep existing US export rules.Summary:The Information reports, citing two people familiar with the matter, that China's government has signalled it could allow domestic firms including ByteDance and Alibaba to buy Nvidia's RTX Pro 5500 chip.China's Ministry of Industry and Information Technology has reportedly asked companies including ByteDance and Alibaba to detail their purchase plans for the chip, including quantities and intended use.The ministry has reportedly told some companies it intends to approve the purchases.Some industry executives are said to expect the RTX Pro 5500 to fall outside current US export restrictions.Reuters said it could not immediately verify The Information's report.An Nvidia spokesperson said US firms remain constrained by a mix of outdated US export controls covering older gaming-era products and by China's own limits on US imports.US equity index futures reopen for the week on CME Globex at 6pm US Eastern time (2200 GMT), the first point where markets can price in this and other weekend headlines.China may be preparing to loosen its stance on Nvidia purchases, according to a report from The Information that has not been independently verified. Citing two people familiar with the matter, the report said Beijing has signalled it could allow domestic companies, including ByteDance and Alibaba, to buy Nvidia's RTX Pro 5500 chip, a high-end part built for professional workstation computing rather than Nvidia's top-tier AI accelerators.The report said China's Ministry of Industry and Information Technology recently asked a group of companies, including ByteDance and Alibaba, to report their plans for purchasing the chip, covering how many units they intended to buy and what they would be used for. The ministry reportedly told some of the companies it intends to approve the purchases once that information is submitted. Bloomberg, also citing The Information, noted the RTX Pro 5500 was only released this month, and separately reported the ministry sought the same purchase and usage detail from companies weighing the buy.Part of the interest in the chip, according to the report, stems from a view among some industry executives that the RTX Pro 5500 may fall outside the scope of existing US export restrictions, potentially offering a route for Chinese firms to access more advanced Nvidia hardware without breaching current controls. Reuters said it was unable to independently verify The Information's reporting.Responding to the report, an Nvidia spokesperson said US companies continue to operate under a combination of constraints: outdated US export controls that still cover gaming products released close to five years ago, and separate restrictions China itself places on imports of US technology. The comment underscores that Nvidia's China access has been shaped by restrictions from both Washington and Beijing, layered on top of broader strategic tensions between the two governments over semiconductors and artificial intelligence. Bloomberg noted the US administration has recently lifted restrictions on some Nvidia chips, though those tend to be older-generation products sold in relatively small volumes, limiting the practical impact of that easing so far.With cash equities closed for the weekend, the first market read on this report and on the broader run of weekend headlines will come through index futures. CME Globex reopens for the week at 6pm US Eastern time, 2200 GMT, giving traders their first look at how futures are positioning heading into Monday's session. This article was written by Eamonn Sheridan at investinglive.com.