Chinese Regulator Blocks Companies from Buying Nvidia AI Chips
China’s internet regulator has asked local tech companies to stop buying Nvidia’s AI chips, according to reports. This move comes as the country looks to reduce reliance on foreign technology and strengthen its own semiconductor industry.
The order mainly targets Nvidia’s advanced chips like the A100 and H100 GPUs, which are widely used for artificial intelligence (AI) and machine learning tasks. These chips are crucial for training large AI models, powering data centers, and supporting cloud computing. However, Beijing wants companies to shift toward homegrown chips made by Chinese firms.
This development is seen as part of the US–China tech war, where both sides are trying to secure dominance in the AI and semiconductor race. The US government has already restricted Nvidia from selling its top chips to China, citing national security concerns. Now, China’s latest order adds more pressure on Nvidia, which has been one of the biggest suppliers of AI hardware to the Chinese market.
For companies in China, the sudden ban means they must rely on domestic alternatives like Huawei and other local chipmakers. But experts say Chinese chips are still not as advanced as Nvidia’s, which could slow down some AI projects in the short term.
Impact:
This move could push Chinese firms to speed up chip innovation and reduce dependency on US suppliers. For Nvidia, the loss of one of its biggest markets might hurt future revenue growth.
