China’s Internet Regulator Bans Nvidia AI Chips from Major Tech Firms

Lead China’s Cyberspace Administration has ordered leading technology companies, including Alibaba and ByteDance, to halt purchases and cancel existing orders for Nvidia’s RTX Pro 6000D AI chips, effective immediately, in a move to curb dependence on U.S. technology and boost domestic alternatives.

Nut Graf The directive underscores Beijing’s intensifying strategy to promote homegrown semiconductor development amid escalating U.S.-China trade tensions over advanced chip exports. By restricting access to Nvidia’s market-tailored processors, China aims to accelerate its own AI chip industry and reinforce techno-sovereignty.

Market Impact

  • Nvidia shares slipped about 1% in premarket trading following the announcement.
  • Major Chinese tech stocks, including firms developing indigenous AI processors, rallied on optimism for local chipmakers.

Regulatory Context China’s ban is more stringent than previous guidance that targeted the older H20 chip model. The Cyberspace Administration’s order applies specifically to the RTX Pro 6000D, which Nvidia designed to comply with U.S. export controls for the Chinese market.

Geopolitical Ramifications Beijing’s move follows recent U.S. export curbs on high-performance AI chips to China and allegations that Nvidia violated Chinese anti-monopoly rules. The step also coincides with broader trade negotiations between Washington and Beijing, adding complexity to already fraught bilateral relations.

Domestic Chip Ambitions Chinese authorities have repeatedly urged local tech giants to pivot toward domestic semiconductor suppliers. Companies such as Huawei, Cambricon and SMIC have accelerated AI chip development, with state support aimed at narrowing the technology gap with Nvidia.

Looking Ahead Industry analysts expect China’s restrictions to intensify competition in the global AI chip market, forcing Nvidia to reassess its China-specific product strategy while Beijing doubles down on its “all-in” approach to homegrown semiconductor innovation.