China Bans Domestic Tech Firms from Purchasing NVIDIA AI Chips
Key Points
- China's Cyberspace Administration ordered firms like ByteDance and Alibaba to cancel NVIDIA AI chip orders.
- The ban targets NVIDIA's RTX Pro 6000D model and halts all testing activities.
- NVIDIA CEO Jensen Huang expressed disappointment and noted geopolitical constraints.
- The directive is stricter than previous guidance on older NVIDIA AI chips.
- Chinese regulators claim domestic AI chips now match or exceed foreign counterparts.
- The ban follows earlier U.S. export restrictions and a separate antitrust probe into NVIDIA's Mellanox acquisition.
China's Cyberspace Administration has ordered local technology companies, including ByteDance and Alibaba, to cancel orders and halt testing of NVIDIA's latest AI GPU. The directive stops the purchase of the RTX Pro 6000D model and reflects a stricter stance than earlier guidance on older chips. NVIDIA CEO Jensen Huang expressed disappointment, noting the limitations imposed by the ban. The move follows earlier U.S. export restrictions and comes amid Chinese regulators' assessment that domestic chips now match or exceed foreign offerings.
Regulatory Ban on NVIDIA AI Chips
The Cyberspace Administration of China (CAC) has issued a directive that bars Chinese technology firms from buying NVIDIA's newest AI graphics processing unit, the RTX Pro 6000D. The regulator instructed companies such as ByteDance and Alibaba to cancel any pending orders and to stop all testing activities related to the chip.
Scope and Enforcement
Following the CAC's order, the affected companies reportedly informed their suppliers to cease all related operations. The ban is described as stronger than earlier "guidance" the regulator issued concerning NVIDIA's previous H20 AI chips, indicating a more firm enforcement approach.
Company Reactions
NVIDIA chief executive Jensen Huang responded with disappointment. He remarked, "There are a lot of places we can't go to, and that's fine," and added that he would "support the US" as it addresses geopolitical issues with China.
Background on Export Controls
Earlier U.S. export restrictions on NVIDIA's H20 AI chips were motivated by concerns that the technology could be used for military applications. After a temporary lift, the chips were again subject to scrutiny, leading to limited demand from Chinese firms.
Domestic Chip Development
Chinese regulators have recently concluded that locally produced AI chips are now comparable to, or possibly exceed, the performance of NVIDIA's offerings. The assessment involved domestic chipmakers such as Huawei and Baidu, which were asked to provide reports comparing their products against NVIDIA's models.
Implications for the Market
The ban adds to a series of regulatory challenges facing foreign semiconductor companies in China. It follows a separate antitrust investigation into NVIDIA's acquisition of Mellanox, where Chinese authorities alleged violations of national regulations and prior acquisition conditions.
Outlook
With the CAC's directive in place, Chinese tech firms are expected to focus on domestic chip solutions while navigating the broader geopolitical landscape that influences technology trade between the United States and China.