China’s internet regulator has instructed its largest technology companies to stop buying Nvidia’s artificial intelligence (AI) chips, escalating the ongoing technology rivalry with the US.
A report by the Financial Times indicates that the Cyberspace Administration of China (CAC) has ordered tech firms such as ByteDance and Alibaba to halt the purchase and testing of Nvidia’s AI chip RTX Pro 6000D.
This directive, which extends beyond previous restrictions on other China-specific Nvidia chips, is seen as part of China’s broader effort to foster its domestic semiconductor industry and reduce its reliance on US technology.
The new restrictions undermine Nvidia CEO Juang Huang’s effort to foster relationships between Washington and Beijing after securing export licenses for Nvidia’s current-generation chip for Chinese AI.
Speaking in London on Wednesday, Huang expressed his disappointment with the move, emphasizing the company’s significant contribution to the Chinese market.
We can only be in the service of a market if the country wants us to be. I’m disappointed with what I see. But they have larger agendas to work out, between China and the US, and I’m understanding of that. We are patient about it.
Beijing has delivered a stark message to its tech giants: the era of relying on American chip technology is over; the future must be built on homegrown alternatives. Chinese regulators have stated that the country’s own AI processors are now comparable to or even superior to the Nvidia products that were previously allowed for export under US restrictions.
The ban has announced amidst the backdrop of US-China trade negotiations in Madrid. Experts view the ban’s timing as a tactical move by China to gain leverage in the trade talks.
