Media: China has banned local firms from purchasing Nvidia AI chips

# MEDIA: China has banned local firms from purchasing Nvidia AI chips

The Cyberspace Administration of China (CAC) has banned the country's largest tech companies from purchasing Nvidia AI chips. This is reported by the Financial Times, citing sources.

According to the publication, several companies such as ByteDance and Alibaba have started 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 to abandon this.

After receiving the relevant notification, Chinese companies informed their suppliers about the cessation of work.

The ban came after regulators from China realized the high efficiency of domestic chips. They allegedly reached a performance level comparable to that of Nvidia products, which are permitted for sale in the country.

Nvidia CEO Jensen Huang noted during a meeting with journalists that he hopes to discuss with Donald Trump the company's business opportunities in China.

"We can only operate in the market if the country itself wants to. I am disappointed by what I see. But they have broader tasks in the relations between Whale and the USA, and I understand that. We are approaching the situation with patience," he noted.

Beijing is pressuring Chinese tech companies to strengthen the domestic semiconductor industry and reduce dependence on Nvidia. This will bolster China's position in the AI race with the US, according to FT.

"Now the signal is crystal clear. Previously, people hoped for a resumption of Nvidia supplies if the geopolitical situation improved. Now all efforts are focused on creating an in-house system," said the head of one of the tech companies.

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

Let us remind you that in August the company reported profits and revenue for the second quarter that exceeded expectations and stated that sales growth in the third quarter would remain at over 50%.