China has reportedly instructed major tech firms to cease purchasing Nvidia's AI chips, including the RTX Pro 6000D and H20, some of which were specifically designed for the Chinese market. This directive from the Cyberspace Administration of China (CAC) escalates efforts to promote domestic semiconductor production and reduce reliance on US technology.
Companies like ByteDance and Alibaba have been told to halt orders and testing, even after beginning verification work with server suppliers. This ban follows earlier restrictions focused on Nvidia's H20 chip. Chinese officials are now claiming that local AI chips rival or surpass restricted Nvidia models, with domestic chipmakers aiming to triple AI processor output in 2024.
Nvidia's stock experienced a slight dip following the report. The Chinese government has been encouraging tech companies to utilise domestically produced AI semiconductors, summoning firms to discuss their H20 acquisitions and address potential data security risks.
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