China’s Cyberspace Administration (CAC) has banned all the tech companies, including the leading players ByteDance and Alibaba, from purchasing Nvidia’s artificial intelligence chips.
This significant move is a part of the country's broader efforts to boost the domestic semiconductor industry, aiming to compete with the US.
Several reports suggested that the CAC ordered companies to discontinue testing and orders of the RTX Pro 6000D, Nvidia’s chip designed particularly for China.
Several firms had planned to buy tens of thousands of units and had already started verification work with suppliers. After all the directives, all such work was halted immediately.
The move expands previous limitations on Nvidia’s H20 chip, earlier the main AI chip accessible in China. Regulators determined that Chinese-made AI processors now match or excel Nvidia’s limited models, hinting a shift toward self-sufficiency.
Beijing has been exerting pressure on local tech giants like Huawei, Cambricon, Alibaba, and Baidu to develop the high-end native chips, aiming to minimise reliance on technology amid intensifying geopolitical feud.
Notably, Nvidia started developing China-only chips after Washington banned exports of its cutting-edge AI products to China under former President Joe Biden.
The RTX Pro 6000D, launched in July, was the last Nvidia chip allowed for sale in some volumes in China.
Some credible industry analysts tipped China’s domestic production is likely to triple in 2026, with enough supply to meet demand without relying on Nvidia.