China directs tech firms to cease Nvidia chip purchases

The Cyberspace Administration of China (CAC), the country’s internet regulator, has restricted China’s largest technology companies, including ByteDance and Alibaba, from purchasing Nvidia’s AI chips, amid the nation’s efforts to strengthen its domestic industry and reduce reliance on U.S. technology, the Financial Times reported, citing sources familiar with the matter.

According to the report, the ban applies to ordering and testing the RTX Pro 6000D, a China-targeted graphics processing unit. Sources also told FT that several companies had already begun testing the equipment with Nvidia’s suppliers, but after receiving the CAC instruction, they asked the suppliers to halt the work.

FT notes that this ban goes beyond the previous recommendation not to acquire Nvidia’s H20 chip. An unidentified tech company executive told the outlet that the country is now focusing on developing a domestic system.

«Earlier, people had hopes of renewed Nvidia supply if the geopolitical situation improved. Now it’s all hands on deck to build the domestic system,» the FT cited the executive as saying.