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Nvidia simply can’t take a break.
After beating China’s sales imposed by the Trump administration, the technological giant now faces a prohibition of their products by Chinese regulators.
The Chinese Internet regulator Cyberspace Administration of China (CAC) ordered the main Chinese technology companies such as Bytedance and Alibaba to end their tests and orders of the RTX Pro 6000D chips in NVIDIA, the Financial Times reported on Wednesday citing people with knowledge of the matter.
Nvidia announced the RTX Pro 6000D chip, a low technology chip designed only to be sold in China under compliance with US export control rules, earlier this year. The chips were initially designed to fill the void left by the H20-Banned chips, another chip only by China of low technology. The H20 were recently reapproved for sale in the United States, but orders have not yet begun to be sent. China also advoc that the United States government approves the sale of Blackwell chips of greater technology to China.
The measure occurs as the last point of rupture of an frayed relationship between China and Nvidia.
Last month, the Chinese authorities began to question and warn the titans of the industry as Tecent about their purchases of the NVIDIA H20 chips, according to Reuters.
“We can only be at the service of a market if a country wants us to be,” said the CEO of Nvidia, Jensen Huang, at a press conference on Wednesday in response to a question about the Chinese CAC. “I am disappointed with what I see, but they have greater agendas to resolve between China and the United States. And I am patient about it. We will continue to support the Chinese government and Chinese companies as they want.”
Nvidia has been caught in the midst of a commercial storm between the two countries.
The Biden administration was the first to enforce export restrictions on NVIDIA chips sold to China, in an effort to stop the entry of high -tech chips to China of national security and competitive fears. The restrictions expanded for a while before Trump relaxed again after Beijing gave a great blow to the domestic trust of AI earlier this year with Depseek’s R1, a model of AI that rivaled the best offers of US companies with smaller cost Nvidia.
Since then, the commercial dispute has gone beyond chips to include discussions about Tiktok and rare earth metals, of which China controls approximately 90% of the world’s supply.
The Chinese AI industry depended largely on American chip chips chips, but all that could be changing soon. After Trump’s general prohibition at the beginning of this year drowned the Chinese industry for access to Nvidia chips, the development of Chinese chips has increased. China Chip’s actions have experienced a great boom so large that the company based in Beijing Cambricon had to warn investors recently.
“The message is now strong and clear,” said a name of Chinese technology without a name to the FT. “Previously, people hoped to renew Nvidia supply if the geopolitical situation improves. Now everything is on the platform to build the domestic system.”
Although no chip, made of Chinese or other manufacturing, has been considered as well with the Nvidia offers, the Financial Times article paints a different image.
After talking with the main Chinese technology companies Huawei, Cambricon, Alibaba and Baidu about their chips development, Beijing has concluded that Chinese IA processors are now comparable or even better than degraded NVIDIA products that are allowed in China, according to the FT, citing a person with knowledge of the matter.
“The high -level consensus is now that there will be enough domestic supply to meet the demand without having to buy Nvidia chips,” a source from the industry to the FT told.
The Chinese chip industry is having a good day. Alibaba Share Rose After the company obtained an outstanding Chinese client, the China Unicom state telecommunications operator, for its new AI chips. Baidu’s actions in Hong Kong jumped The most they have in more than three years After analysts expressed confidence in the chips company of the search engine operator.
