China bans tech companies from buying Nvidia’s AI chips

China bans tech companies from buying Nvidia’s AI chips

Hopefully this is will work as foundation to stop much mal practising in the in the industry, which recently has seen many cases where both buyers and sellers were trying to go around the rules, and at the end, has seen buyers losing both; their funds and the kit they purchased.
 

China has instructed its largest technology groups, including ByteDance and Alibaba, to halt purchases and trials of Nvidia’s latest AI chips designed for the Chinese market. The directive, issued by the Cyberspace Administration of China (CAC), targets the RTX Pro 6000D and comes as Beijing intensifies efforts to accelerate local semiconductor production and reduce dependence on US suppliers.

Industry insiders said several companies had planned major orders and had already begun validation work with Nvidia’s server partners. Those projects were stopped immediately following the CAC’s order. The move sent Nvidia’s shares down about 3 per cent.

Unlike earlier restrictions that focused on the H20 chip, this ban marks a broader push to replace Nvidia’s products with homegrown alternatives. Regulators recently reviewed performance data from Chinese chipmakers such as Huawei, Cambricon, Alibaba, and Baidu, and concluded that their AI processors now match or exceed the performance of Nvidia’s export-restricted models.

Nvidia chief executive Jensen Huang expressed disappointment but noted that the company could only operate in markets where governments allow it. He added that broader geopolitical tensions between China and the US were shaping the situation.

The message to Chinese firms is clear: invest fully in local chip technologies to compete in the global AI race.

Read the full report at FT.com

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