Nvidia Caps Chinese Share of Chip Rental Sales
The unwritten rule and white list show how access to Nvidia's AI chips is being rationed by geography, with the company's policy in effect now.
Updated on Nov. 3, 2026 in Semiconductors
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Nvidia has capped Chinese customers at 49 percent of sales for companies that rent out its chips, according to a Financial Times report, and has built a white list that cuts its Asian clients by more than 50 percent. The rule is applied through an unwritten, verbal agreement and covers new contracts with Nvidia clients worldwide. This is a reported corporate policy rather than a published rule, and it is in effect now.
Why it matters
The cap shows how chip supply is being allocated by geography, not just by price or demand. Nvidia is using informal, verbal instructions to manage its exposure to China, a method that avoids a written record.
The chip request totals more than 3 million RTX Pro 5500 units, valued at over $35 billion from ByteDance, Alibaba and Tencent. Nvidia has not published the cap in writing, so the 49 percent figure rests on the reported verbal instructions and the Financial Times account.
The players
Nvidia
The U.S. chip designer whose GPUs power AI data centers and whose white list and 49 percent cap govern which customers can access its chips.
ByteDance
The Chinese technology company behind TikTok that sought chips from Nvidia in the reported request for more than 3 million RTX Pro 5500 units.
Alibaba
The Chinese cloud and e-commerce company that is among the tech giants reported to have sought more than $35 billion in Nvidia chips.
Tencent
The Chinese internet company that is among the tech giants reported to have sought more than $35 billion in Nvidia chips.
President Donald Trump
The current President of the United States, who signed the Sept. 29 "Inaugurating the Era of Super Intelligence" executive order.
The details
Nvidia passes the 49 percent limit to its rental-company clients through an unwritten, verbal agreement rather than a contract clause. The company has also built a white list that determines which Asian clients remain eligible for supply, cutting that group by more than 50 percent. Because the instructions are verbal, the terms can be adjusted without a formal amendment, which the company may use to respond to scrutiny of its China business.
Timeline
Summer: Nvidia began giving verbal instructions to clients.
Sept. 8: The NSA, CISA and FBI issued a joint cybersecurity advisory.
Sept. 29: President Donald Trump signed the "Inaugurating the Era of Super Intelligence" executive order.
Oct. 20: Reuters reported the Chinese chip request.
Monday: The Financial Times reported the 49 percent cap.
The Tech Race
The white list and 49 percent cap show Nvidia managing access to its GPUs as a geopolitical lever in the race for AI compute. The reported request from Chinese tech giants for more than 3 million chips, against a supply that the company may not be able to meet, signals how demand is outrunning production.
Companies that rent Nvidia chips to Chinese customers now face a 49 percent sales cap on new contracts worldwide, which may limit how much capacity they can sell. Clients across Asia may find access narrower under the white list, though the report does not specify availability or pricing changes.
The takeaway
The verbal, unwritten nature of the cap means its terms can change quickly, so the signal to watch is whether Nvidia formally documents the policy or changes it. Track whether the company can fulfill the reported request for more than 3 million RTX Pro 5500 chips against its production capacity.
Further reading
For the wider chip supply picture behind this policy, see the Semiconductors coverage.
Source note: This article includes information reported by The Daily Caller.
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