China Tells Its Tech Companies They Can’t Buy AI Chips from Nvidia

Nvidia has just been shut out of the Chinese market, but this time, the action comes from the Chinese government rather than the U.S.

On Wednesday, China’s internet regulator, the Cyberspace Administration of China, banned domestic tech companies from purchasing Nvidia AI chips, as first reported by the Financial Times.

The agency also instructed major tech companies, such as ByteDance and Alibaba, to cease testing and placing orders for the Nvidia RTX Pro 6000D server, a device specifically designed for the Chinese market.

This move follows earlier steps taken by Beijing, which had discouraged Chinese companies from purchasing Nvidia chips in late August, instead encouraging local alternatives.

The ban marks a significant blow to China’s tech ecosystem. While companies such as Huawei and Alibaba produce AI chips locally, Nvidia remains the global market leader, with its chips considered some of the most advanced in the industry.

When asked for comment, Nvidia CEO Jensen Huang responded at a press conference on Wednesday, stating, “We can only be in service of a market if a country wants us to be. I’m disappointed with what I see, but they have larger agendas to work out between China and the United States. And I’m patient about it. We’ll continue to be supportive of the Chinese government and Chinese companies as they wish.”

The Trump administration previously imposed licensing requirements on semiconductor companies, including Nvidia, in April, restricting their ability to sell AI chips in China.

During Nvidia’s first-quarter earnings call, Huang projected that Nvidia would face an $8 billion revenue loss in the second quarter due to its inability to sell its H20 AI chips in China.

In June, Nvidia announced that it would exclude China from its future profit and revenue forecasts due to the company essentially being locked out of the market.

In July, the Trump administration reversed its position, allowing semiconductor companies to sell their chips in China once again. In August, the White House unveiled a new plan: semiconductor companies could resume sales in China, but with a 15% revenue share going to the U.S. government. However, as of Nvidia’s latest earnings report, the company had yet to make any sales to Chinese customers under this arrangement, citing the slow implementation of President Trump’s proposal.