China Ordered Domestic Companies to Stop Buying Nvidia Chips

The Chinese regulator has ordered domestic technology companies to stop buying Nvidia AI chips. Cyberspace Administration of China told companies, including TikTok parent ByteDance and Alibaba, not to purchase Nvidia’s RTX Pro 6000D, which it explained is a chip designed for use there.

Nvidia CEO Jensen Huang told CNBC his company probably contributed more to the China market than most countries have during a press conference in London. “And I’m disappointed with what I see,” Huang said. “But they have larger agendas to work out between China and the United States, and I’m understanding of that.” He told the news site that Nvidia has guided financial analysts not to include China revenue in financial forecasts.

Nvidia has been in the middle of a tug of war between the administration of US President Donald Trump and the government in China. Nvidia reconfigured its high-end offerings for China following US export controls on AI chips introduced in October 2023 during President Joe Biden’s administration due to national security concerns. The H20 GPU was the top-performing chip before export restrictions.

In July, the chipmaker received assurances from US authorities that it could resume selling the H20 GPU chip. In August, Chinese authorities warned domestic companies to avoid buying Nvidia’s AI chips. However, Nvidia and AMD reached an agreement with the US government shortly after to restart sales of their AI chips to China. Earlier this week, China’s State Administration for Market Regulation also found Nvidia violated the country’s anti-monopoly law for its acquisition of Mellanox Technologies in 2020.