China Bans Nvidia’s AI Chips, Tightening Tech Controls Amid U.S. Tensions

China has recently escalated its restrictions on U.S. technology by banning its top tech companies from purchasing Nvidia’s latest AI chips. According to reports from the Financial Times and Reuters, China’s Cyberspace Administration (CAC) has ordered leading firms, including Alibaba and ByteDance, to stop testing, cancel existing orders, and halt procurement of Nvidia’s RTX Pro 6000D AI chips—products specifically designed for the Chinese market.

This move is part of Beijing’s broader strategy to reduce reliance on American technology and boost domestic AI chip manufacturing, with companies like Huawei and Cambricon aggressively developing competitive alternatives. The ban extends beyond prior restrictions on the Nvidia H20 chip and marks a significant tightening of controls amid ongoing trade tensions between the U.S. and China.

Nvidia’s CEO Jensen Huang expressed disappointment over the ban during a press event in London. The news impacted Nvidia’s stock, which saw a decline following the announcement, although the company had experienced substantial gains earlier this year.

Chinese tech companies had already begun testing and validating these chips with Nvidia’s server suppliers before being instructed to cease all activities. Beijing contends that its domestic chips now match the performance of Nvidia’s China-specific models, prompting the government to push local adoption over foreign purchases.

This ban highlights the intensifying tech rivalry between China and the U.S., with China bolstering its self-reliance in AI hardware while curbing American companies’ access to crucial markets. It also comes amid allegations by Chinese regulators accusing Nvidia of violating anti-monopoly rules.

In the context of global AI competition, this development exemplifies the complex interplay of geopolitics and technology innovation, as both superpowers strive for dominance in AI capabilities.

Key points:

• China’s CAC orders leading firms to stop buying and testing Nvidia’s latest AI chips.

• The ban targets RTX Pro 6000D and follows previous restrictions on Nvidia’s H20 chip.

• Beijing promotes homegrown AI chip production by companies like Huawei and Cambricon.

• Nvidia’s CEO expresses disappointment; stocks dip after announcement.

• The move reflects escalating U.S.-China tech tensions and efforts toward domestic tech self-sufficiency.

• The ban is coupled with anti-monopoly investigations against Nvidia in China.

These developments create significant challenges for Nvidia’s access to the largest AI market in the world, while signaling accelerated efforts by China to nurture its own AI semiconductor ecosystem.