China Restricts Nvidia Chip Purchases by Leading Tech Firms
BEIJING - China has instructed its major technology companies to halt purchases of chips from Nvidia, signaling a push to bolster domestic semiconductor manufacturing, according to reports.The Cyberspace Administration of China (CAC), the country’s internet regulator, reportedly informed tech giants including ByteDance, owner of TikTok, and Alibaba, to cease testing of an AI chip - the RTX Pro 6000D – specifically designed for the Chinese market by the Santa Clara, California-based Nvidia.
Nvidia CEO Jensen Huang expressed disappointment regarding the reports, stating, “We will continue to be supportive of the Chinese government and Chinese companies as they wish,” during a press conference in London.
The move follows accusations from the Chinese government that Nvidia violated its antimonopoly law concerning the H20 chip, a previous iteration tailored for China. Several companies had begun testing tens of thousands of the RTX Pro 6000D chips, working with Nvidia’s server suppliers, though demand appeared limited, with major Chinese tech firms reportedly opting not to integrate the chip into their products.
News of the restriction sent Nvidia’s stock down 2.6 percent as of 11:30am New York time (15:30 GMT).
The ban occurs amid escalating trade tensions between the US and China, following recent talks in Madrid.The US announced a framework deal allowing private entities to take over TikTok’s US operations, granting ByteDance a minority stake. The US has previously imposed restrictions on China’s access to advanced chips, prompting Beijing to encourage domestic firms to reduce reliance on US suppliers.
Huang is currently in London alongside US president Donald Trump’s state visit, where Nvidia is slated to provide tens of thousands of processor chips to the UK arm of Stargate, an AI infrastructure project backed by Trump and led by OpenAI. Huang anticipates discussing the situation with President Trump at a state banquet. he reiterated Nvidia’s commitment to supporting both countries as they navigate these “geopolitical policies.”
