China Restricts Local Firms from Purchasing Nvidia AI Chips

China bans tech firms from buying Nvidia AI chips, pushing for domestic semiconductor growth.

The Cyberspace Administration of China (CAC) has prohibited the country’s largest tech companies from purchasing Nvidia AI chips, according to Financial Times, citing sources.

The publication reports that several firms, including ByteDance and Alibaba, had begun testing and planned to purchase tens of thousands of RTX Pro 6000D—a special product from the American chipmaker for China. However, the regulator demanded they abandon these plans.

Upon receiving the notification, Chinese firms informed their suppliers to halt operations.

The ban followed Chinese regulators’ realization of the high efficiency of domestic chips, which allegedly reached a performance level comparable to Nvidia’s products permitted for sale in the country.

Nvidia CEO Jensen Huang, in a meeting with journalists, expressed his hope to discuss the company’s business opportunities in China with Donald Trump.

“We can only operate in a market if the country itself wants it. I am disappointed by what I see. But they have broader objectives in the China-US relationship, and I understand that. We approach the situation patiently,” he noted.

Beijing is pressuring Chinese tech companies to strengthen the domestic semiconductor industry and reduce reliance on Nvidia. This move is expected to bolster China’s position in the AI race with the US, writes FT.

“The signal is now crystal clear. Previously, people hoped for a resumption of Nvidia supplies if the geopolitical situation improved. Now all efforts are focused on creating our own system,” said the head of one tech company.

Nvidia introduced the RTX Pro 6000D in July during Huang’s visit to Beijing. At that time, the American company stated that Washington was easing the export ban on the H20 chip.

In August, the firm reported better-than-expected profit and revenue for the second quarter and stated that sales growth in the third quarter would remain above 50%.