Domestic corporations in China are forbidden from acquiring AI chips produced by Nvidia.
In a recent development, sales of Nvidia's RTX Pro 6000D chips to China have come to a halt due to security concerns raised by Beijing. According to a report published by the Financial Times (FT), the China Cybersecurity Bureau (CAC) has instructed Chinese tech giants to stop purchasing AI chips from Nvidia, with companies like TikTok's parent company, Bytedance, and internet conglomerate Alibaba among those affected.
The RTX Pro 6000D chips belong to Nvidia's Blackwell series, and the specific chips in question are these advanced products. It's worth noting that the H20 chips, designed specifically for the Chinese market, were not mentioned as being part of the export restrictions imposed by the CAC.
The RTX Pro 6000D chips were designed to bypass export restrictions, while it's unclear if the same applies to the H20 chips. In a move that could impact Nvidia's stock, the U.S. President Donald Trump's government recently allowed the sale of less powerful H20 chips from Nvidia to China, but only on the condition of sharing profits.
The instruction from the CAC includes canceling existing orders, and it's reported that the search results do not provide the name of the last person who granted the sales license for Nvidia's RTX Pro 6000D chips in China before these were canceled.
Nvidia had planned to export chips from the Blackwell series to China, but the current situation has resulted in a fall in Nvidia stock by more than one percent in pre-market U.S. trading. The company, along with Chinese companies and the CAC, did not respond to requests for comment from the Financial Times (FT).
Washington opposes the delivery of high-tech chips from the U.S. to China, citing security reasons. Earlier this week, Beijing's competition authority launched a deeper investigation into Nvidia for suspected violations of the anti-monopoly law in connection with a previous acquisition.
This news follows a period of tension between the U.S. and China over technology transfers and intellectual property rights. The situation is being closely watched by the tech industry, as the outcome could set a precedent for future trade relations between the two nations.
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