China’s internet regulator has ordered the country’s biggest technology companies to halt all purchases of Nvidia’s artificial intelligence (AI) chips, according to a report by the Financial Times.
The Cyberspace Administration of China (CAC) instructed leading firms including ByteDance and Alibaba to immediately stop testing and ordering Nvidia’s AI products, including the RTX Pro 6000D – a China-specific chip launched just two months ago. Several companies had planned to order tens of thousands of these chips and had already begun testing with Nvidia’s server suppliers before receiving the directive.
This new order is stricter than previous guidance that targeted Nvidia’s H20 chip, which is widely used for AI applications in China. By blocking purchases, Beijing is intensifying its push to build a self-reliant semiconductor supply chain and reduce dependence on U.S. chipmakers.
“The message is now loud and clear,” said an executive at one of the affected companies. “Earlier, there were hopes of renewed Nvidia supply if geopolitics improved. Now, all efforts are focused on building a domestic system.”
China Finds Nvidia in Antitrust Violation Linked to 2020 Mellanox Deal
China has ruled that Nvidia violated antitrust laws following a probe related to its 2020 Mellanox acquisition. While penalties are possible, specific details have not been disclosed.
U.S. Treasury Voices Disappointment Over China’s Nvidia Ruling
U.S. Treasury Secretary Scott Bessent said American officials told Chinese negotiators they were disappointed after learning that China ruled Nvidia violated anti-monopoly laws in a major 2020 deal. The news broke while trade talks were ongoing in Madrid.
Bessent, speaking to CNBC from London, said he wasn’t sure if the Chinese delegation knew about the ruling beforehand. He added that the Nvidia decision was unrelated to the ongoing trade negotiations or their outcome.
The move has already affected global markets. Nvidia shares were down about 1% in premarket trading following the Financial Times report.
This development underscores the growing technology rivalry between the U.S. and China, particularly in artificial intelligence and advanced semiconductor technology.
Update: NVIDIA CEO Comments on China Relations
NVIDIA’s CEO said the company can only operate in a country if that country allows it. He added they will continue supporting Chinese companies and the government as needed. He expressed disappointment but noted bigger issues exist between China and the U.S.
House Speaker Johnson on Nvidia-China Issue
House Speaker Johnson said the U.S. did not provoke the situation involving Nvidia and China. He emphasized that America must take China seriously and described China’s action against Nvidia as a counterproductive development.
