China Puts New Ban on Nvidia AI Chips

TaiwanPlus News

China’s internet regulator has reportedly told major domestic tech firms, including ByteDance and Alibaba, to stop testing and halt orders of Nvidia’s China-specific RTX Pro 6000D GPUs. Some analysts view the directive as a negotiating tactic ahead of US–China trade talks.

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00:00China's internet regulator has reportedly told the country's biggest tech firms to stop buying

00:05NVIDIA's AI chips, Beijing's strongest push yet to break reliance on U.S. chips. Companies such

00:12as ByteDance and Alibaba have been told to end testing and halt orders of NVIDIA's RTX Pro 6000D,

00:20an AI chip designed to comply with U.S. export controls for China. Despite the ban,

00:26China says it's still open to dialogue.

00:30The Financial Times says Chinese firms had planned to buy tens of thousands of those chips,

00:47but officials now argue domestic processors can match NVIDIA's China-only models.

00:53Underscoring that confidence, Chinese chipmaker Huawei on Thursday unveiled its new SuperPod,

00:58which can link up to more than 15,000 GPUs, a direct challenge to NVIDIA's NVLink.

01:04NVIDIA's stock ended down 2.6% on Wednesday on the news,

01:09and some analysts say the impact to NVIDIA's bottom line could be significant.

01:13NVIDIA's total sale to China still accounts for about 13% of its total sales in 2024. I would say

01:21it would be a lot bigger than what we see before just relying on export control because it's cutting

01:29off the demand from China. NVIDIA's CEO Jensen Huang, in London as part of a business delegation with U.S.

01:37President Donald Trump, said,

01:39We can only be in service of a market if a country wants us to be. I'm disappointed with what I see,

01:44but they have larger agendas to work out between China and the United States.

01:48It's the latest hit to NVIDIA's China push, which has seen setbacks to exports of its H20 chip from

01:54both Washington and Beijing. Chinese authorities on Monday said NVIDIA violated antitrust laws,

02:00putting more pressure on the company. It all comes ahead of a planned phone call between U.S.

02:04President Donald Trump and Chinese President Xi Jinping on Friday. Some analysts see the moves

02:09by both sides as negotiating tactics for wider trade talks. It's kind of a new era for export

02:16control policy for sure because before that, it mostly still based on strategic interest, national

02:23security. So blending export control with trade talks is a trend I've seen more and more in the

02:32recent years. With this latest move from Beijing, the stakes for NVIDIA, U.S.-China tech ties and the

02:38global AI race are rising fast. Alex Chun and Chris Gorin for Taiwan Plus.

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