China Tells Its Tech Companies To Stop Buying All of Nvidia's AI Chips

China's internet regulator has told the country's biggest technology companies to stop buying all of Nvidia's artificial intelligence chips and terminate their existing orders, as Beijing steps up efforts to boost its homegrown semiconductor industry and compete with the US. From a report: The Cyberspace Administration of China (CAC) informed companies including ByteDance and Alibaba this week to terminate their testing and orders of the RTX Pro 6000D, Nvidia's tailor-made product for the country introduced two months ago, according to three people with knowledge of the matter.

Several companies had indicated they would order tens of thousands of the RTX Pro 6000D, and had started testing and verification work with Nvidia's server suppliers before telling them to stop the work after receiving the CAC order, said the people. Nvidia CEO responds: In response to a question on the FT report, Huang said Wednesday that 'we can only be in service of a market if the country wants us to be.'

'We probably contributed more to the China market than most countries have. And I'm disappointed with what I see,' Huang said. 'But they have larger agendas to work out between China and the United States, and I'm understanding of that.'

It comes after a tumultuous few years for Nvidia's business in China, which Huang described as 'a bit of a rollercoaster.'

'We've guided all financial analysts not to include China' in financial forecasts, Huang told reporters Wednesday at a press briefing in London. 'The reason for that is because that's largely going to be within the discussions of the United States government and Chinese government.'

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