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China tells tech firms to stop buying all of Nvidia's AI chips, FT reports

Daniel Nenni

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China's Cyberspace Administration has reportedly ordered major tech companies like ByteDance and Alibaba to halt purchases of Nvidia's AI chips. The directive includes terminating existing orders and testing of the RTX Pro 6000D. This move signals a potential shift in China's approach to acquiring advanced AI technology from U.S. firms.

Nvidia chief executive Jensen Huang said on Wednesday the US and Beijing "have larger agendas to work out" after media reports of China's internet regulator ordering top tech firms to halt purchases of the American company's AI chips and cancel existing orders.

Successive US administrations have restricted China's access to advanced chips, prompting Beijing to press domestic firms to turn away from American suppliers, hitting industry leaders like Nvidia.

The report comes just days after Beijing accused the company of violating its anti-monopoly law, marking another flare-up in the trade war with Washington, while U.S. officials voiced national security concerns at trade talks with China in Madrid this week.

The Cyberspace Administration of China has directed companies including ByteDance and Alibaba to terminate their testing and orders of the RTX Pro 6000D, the Financial Times reported on Wednesday, citing three people with knowledge of the matter.

"We can only be in service of a market if a country wants us to be," Huang said at a press conference in London, in response to a question about the CAC.

"I'm disappointed with what I see, but they have larger agendas to work out between China and the United States and I'm patient about it. We'll continue to be supportive of the Chinese government and Chinese companies as they wish."

Alibaba, Bytedance and the CAC did not immediately respond to Reuters requests for comment.

The fresh ban is stronger than the earlier guidance from regulators that focused on the H20, the previous version of Nvidia's China-tailored AI chip, the report said.

Nvidia's RTX6000D, its newest artificial-intelligence chip tailored for the Chinese market, has seen only lukewarm demand, with some major tech firms opting not to place orders, Reuters first reported earlier this week.

Several companies had indicated they would order tens of thousands of the RTX Pro 6000D and had started testing and verification work with Nvidia's server suppliers before telling them to stop the work after receiving the CAC order, FT reported.

 
Victory is ours! :ROFLMAO:

Hopefully this will keep the US government motivated to invest in the semiconductor industry otherwise we will be defeated by the evil China empire! :eek:

Politics sure is entertaining.
 

Nvidia CEO Jensen Huang Says ‘That’s Fine’ as China Ramps Up AI Arms Race With NVDA Chip Ban​


Jen-Hsun Huan NVIDIA's Founder, President and CEO by jamesonwu1972 via Shutterstock

Jen-Hsun Huan NVIDIA's Founder, President and CEO by jamesonwu1972 via Shutterstock

Nvidia (NVDA) remains in the hot seat today, as Beijing continues to take aim at the U.S. semiconductor industry. A Financial Times report claims the Cyberspace Administration of China (CAC) has banned major tech companies from buying Nvidia’s artificial intelligence (AI) chips, and instructed the likes of ByteDance and Alibaba (BABA) to discontinue testing of the RTX Pro 6000D chip that’s tailor-made for mainland buyers.

In response to the news, Nvidia CEO Jensen Huang told reporters on Wednesday that he’s “disappointed,” but will be “patient” as regulatory roadblocks are smoothed out.

 
Victory is ours! :ROFLMAO:

Hopefully this will keep the US government motivated to invest in the semiconductor industry otherwise we will be defeated by the evil China empire! :eek:

Politics sure is entertaining.
This is exactly what the US (both Biden and Trump) wanted. No sales to China. China makes their own datacenters with Chinese Chips. I assume Department of Commerce is celebrating?

China will have tons of AI datacenters with China developed hardware. Congratulations


Step one for Trump administration:

Follow the law, and don’t detain or deport legal foreign workers who are helping to rebuild and strengthen US manufacturing.

 
Follow the law, and don’t detain or deport legal foreign workers who are helping to rebuild and strengthen US manufacturing.
Yeah, not a great approach to encouraging foreign investment. Trump claims he has learned something important for that "mistake". Stephen Miller, not so much.
 
Most Chinese companies will train their AI models offshore.
This should be the opportunity for data centers in Singapore, Europe and Canada.
Sometimes Kimi and Doubao cannot access Chinese websites because their data centers are outside of the mainland.
 
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Most Chinese companies will train their AI models offshore.
This should be the opportunity for data centers in Singapore, Europe and Canada.
Sometimes Kimi and Doubao cannot access Chinese websites because their data centers are outside of the mainland.

100% true. Other countries are still doing business with China. I'm expecting India to build data centers for just this reason. The US will lose billions of dollars by not doing business with China directly. Cutting off semiconductors is like cutting off oil, it really is an act of war and China could easily blockade the Taiwan Straight to get the party started.
 
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