China prohibits its technology companies from buying Nvidia AI chips: report

By Hannah Pérez

China’s Internet regulator has ordered local technological giants to abandon the American Nvidia chips to favor local technology, FT reported.

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• China reinforces its technological independence with veto to the Nvidia chips.
• Local companies will be forbidden to use NVIDIA’s technology.
• The CEO of Nvidia, Jensen Huang, expressed his disappointment to the decision.
• Tensions and technological competence between China and the US intensifies.

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China’s Internet regulator has ordered the main technology companies in the country, including Bytedance and Alibabathat stop the purchase and cancel the orders of artificial intelligence (AI) chips of NVIDIA, according to the Financial Times on Wednesday.

This order, which specifically caused the administration of the cyberspace of China (CAC), intensifies the efforts of Asian power to reduce its dependence on American technology and strengthen its national semiconductor industry.

According to the report, the CAC instructed the companies to suspend the tests and orders of the RTX Pro 6000D chip, specifically designed by Nvidia For the Chinese market, as well as the previous model H20. Several companies had expressed interest in acquiring tens of thousands of units of the RTX Pro 6000D and began evidence with the suppliers of servers of Nvidia before receiving the cancellation order, according to sources cited by the Financial Times.

CEO of Nvidia expresses its disappointment

This prohibition occurs in a context of commercial tensions between China and the United States, where Beijing has been looking to develop an independent semiconductor supply chain to compete in the global career of AI. According to the news media Tom’s hardwarethe Chinese government considers that the chips of the IA produced locally by companies such as Huawei and Change They already match or exceed the performance of the products of Nvidia allowed under US export restrictions.

Jensen Huang, CEO of Nvidiaexpressed its disappointment to the decision. “We can only serve a market if the country allows us“He said during a press conference in London, according to the news agency CNBC.

“I am disappointed with what I see, but I understand that there are larger agendas between China and the United States”Huang added, and pointed out that Nvidia has oriented financial analysts not to include China in their projections due to geopolitical uncertainty.

Tensions and competition between China and the US.

The movement continues to previous restrictions from the United States, which limited the exports of advanced chips of Nvidia To China for national security reasons. In August, Donald Trump’s administration agreed Nvidiapoints out Reuters

At the same time, the order of the CAC coincides with an antitrust investigation initiated by the State Administration for China market regulation against Nvidia for the acquisition of Mellanoxwhich underlines the growing tensions.

Meanwhile, China is promoting the production of national AI chips, with plans to triple its capacity next year, according to a previous report by the Financial Times.

“The message is clear. Now it’s all hands to work to build a domestic system”Said an executive of a Chinese technology company on the ban, in comments cited by the Financial Times. This directive reflects Beijing’s determination to prioritize its own technological advances against international restrictions.

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