China Bans Nvidia Chip

China's cyberspace regulator has instructed major tech firms, including Alibaba, to halt orders for Nvidia's RTX Pro 6000D. This workstation semiconductor can be repurposed for AI applications. The ban is part of China's effort to reduce reliance on U.S. technology, especially in the AI sector. The RTX Pro 6000D was specifically tailored for China to meet U.S. export requirements.

This directive follows U.S. export restrictions on advanced AI chips. China's move aims to accelerate its technological autonomy. Some believe that domestic chips now perform on par with Nvidia chips. Nvidia CEO Jensen Huang expressed disappointment, noting the company has contributed significantly to the Chinese market.

Nvidia has been caught in the middle of trade tensions between the U.S. and China. The ban impacts Nvidia's market share in one of its largest markets. China's actions could also be a move to gain leverage in trade negotiations with the U.S.