China Bans Tech Firms from Purchasing NVIDIA AI Chips

September 18, 2025
China's Cyberspace Administration has banned domestic tech companies from buying NVIDIA AI chips, impacting firms like ByteDance and Alibaba.

The Chinese Government has banned its tech companies from purchasing AI chips from NVIDIA, as reported by the Financial Times. The Cyberspace Administration of China has instructed major firms, including ByteDance and Alibaba, to halt testing and orders of NVIDIA's RTX Pro 6000D server chips, which were specifically designed for the Chinese market.

This move marks a significant shift in the semiconductor landscape, as Beijing had previously discouraged the purchase of these chips in favor of domestic alternatives from companies like Huawei and Cambricon. Despite the availability of local options, NVIDIA's chips are considered some of the most advanced globally, making this ban a notable blow to China's tech ecosystem.

NVIDIA CEO Jensen Huang expressed disappointment over the decision, stating that the company can only serve markets that welcome them. The ban comes amid ongoing trade tensions between the United States and China, with NVIDIA previously facing export restrictions from the U.S. government. The company's stock experienced a decline following the announcement, reflecting the market's reaction to the loss of access to the world's second-largest cloud computing market.

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