China has banned major tech companies from buying Nvidia chips

The Chinese government, namely the Cyberspace Administration of China (CAC), on Wednesday banned domestic technology companies from purchasing Nvidia’s AI chips, as first reported by the Financial Times. The CAC also demanded that major companies such as ByteDance and Alibaba immediately stop testing and ordering Nvidia’s RTX Pro 6000D server, a device designed specifically for the Chinese market.
Beijing had previously urged companies in late August to refrain from buying Nvidia chips and instead promote local alternatives. This ban will deal a serious blow to China’s tech ecosystem. Although companies like Huawei and Alibaba are developing their own AI chips, Nvidia is considered the global leader and its chips are recognized as some of the most advanced on the market.

“We can only serve the market if the country wants us to. I am disappointed, but I believe in a larger engagement between China and the U.S. and I am willing to be patient. We will continue to support the Chinese government and Chinese companies if they wish to do so.”