China Orders Tech Firms to Halt Nvidia AI Chip Purchases
China’s internet regulator has instructed major technology companies to stop buying chips from U.S. semiconductor leader Nvidia, according to the Financial Times.
The Cyberspace Administration of China (CAC) reportedly told firms such as ByteDance, the owner of TikTok, and e-commerce giant Alibaba to cancel existing Nvidia chip orders. The directive also included halting testing and purchases of Nvidia’s RTX Pro 6000D processors, which were specifically designed for the Chinese market.
Some companies had planned to purchase tens of thousands of these chips. However, following the CAC’s order, Nvidia’s server partners were told to suspend testing and verification processes.
Nvidia CEO Jensen Huang had introduced the RTX Pro 6000D during a visit to Beijing in July. At that time, U.S. regulators were tightening restrictions on Nvidia’s other China-focused chip, the H20. Chinese officials have also warned companies that they must justify the use of the H20 if local alternatives are available.
This move highlights Beijing’s push to strengthen domestic semiconductor firms such as Huawei and Cambricon. Regulators believe these Chinese manufacturers now produce chips that match or even surpass Nvidia’s specialized products for the Chinese market.
Nvidia’s stock edged slightly lower in U.S. premarket trading on Wednesday. The decline followed earlier losses after reports suggested weak demand for the RTX Pro 6000D in China.
