Chinese authorities prohibit businesses from purchasing Nvidia chips. - Restricts corporations from purchasing Nvidia chips, implement by China
In a recent development, China's cybersecurity authority has instructed major domestic companies to halt all testing and purchasing plans for Nvidia's RTX Pro 6000D chips, as reported by The Financial Times on Wednesday. This move is seen as an attempt by China to exert additional pressure on the USA.
The RTX Pro 6000D chip, specifically designed for the Chinese market, is deemed indispensable for the development of generative AI. The ban could potentially hinder the development of AI technologies by affected companies, including Alibaba and Bytedance, the parent company of Tiktok.
Tencent, another Chinese tech giant, is also among the companies refraining from products by Nvidia. Other large Chinese firms are hesitant to order the RTX6000D chip due to cost and performance concerns, but specific names beyond Alibaba, ByteDance, and Tencent are not explicitly mentioned in the available sources.
The ban comes amidst ongoing negotiations between the USA and China regarding mutual tariffs, with the deadline set for November 10. The U.S. government is implementing export restrictions to prevent China from developing certain military applications.
Jensen Huang, the CEO of Nvidia, has not made any specific statements regarding the ban. Nvidia, the largest manufacturer of GPU chips, has denied allegations that it violated China's anti-monopoly law.
The USA is keen on maintaining its lead in the sector of GPU chips for the development of generative AI. If an agreement is reached between China and the USA, the restrictions on Nvidia will be lifted. China has also called on its companies to reduce their dependence on Nvidia.
This latest move in the tech rivalry between the USA and China underscores the growing competition in the AI sector. As the race for AI dominance continues, it remains to be seen how this ban will impact the development of AI technologies in China and the relationship between the two global powers.
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