Chinese companies are increasingly placing more orders for Nvidia's (NASDAQ:NVDA) H20 artificial intelligence chip amid rising demand for DeepSeek's (DEEPSEEK) low-cost AI models, Reuters reported on Tuesday citing people familiar with the matter.

Grubhub CEO Howard Migdal said on Friday that the food delivery firm has decided to cut about 500 jobs, as it focuses on aligning its business with Wonder after the takeover was completed last month.

Alibaba, ByteDance, and Tencent are driving demand for NVIDIA H20 chips, fueling China’s AI boom despite U.S. export restrictions.

Alibaba, ByteDance, Tencent & Co. will likely order far more AI chips from Nvidia than before. This is likely due to the integration of AI models from DeepSeek.

Nvidia, the chip giant at the heart of the artificial intelligence (AI) boom, said business remained strong, despite fears of a bubble stirred by the launch of Chinese AI firm DeepSeek's launch on the scene last month.

Nvidia forecast higher first-quarter revenue on Wednesday, signaling continued strong demand for artificial intelligence chips, and said orders for its new Blackwell semiconductors were “amazing.” The company’s forecast helps allay doubts around a slowdown in spending on its hardware that emerged last month,

DeepSeek's affordable AI models have raised demand for Nvidia's H20 AI chips. Nvidia's revenue and market position have benefited significantly, with major Chinese companies like Tencent and Alibaba increasing their orders.