Next Level of Escalation Chinese Companies Are No Longer Allowed to Buy Nvidia Chips

Source: dpa 1 min Reading Time

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The chip clash between China and the USA is intensifying. Because Nvidia chips are deemed unsafe, Beijing bans their purchase ...

The AI high-tech chip RTX Pro 6000D from Nvidia in the USA is suspicious to Chinese authorities. Therefore, domestic companies are now prohibited from purchasing these chips. So Nvidia can do whatever it wants—either it angers the US government or Beijing ...(Image: Nvidia)
The AI high-tech chip RTX Pro 6000D from Nvidia in the USA is suspicious to Chinese authorities. Therefore, domestic companies are now prohibited from purchasing these chips. So Nvidia can do whatever it wants—either it angers the US government or Beijing ...
(Image: Nvidia)

The dispute over high-tech chips between China and the USA is reportedly escalating further, according to a press report. China's cybersecurity authority CAC has instructed the country's largest technology companies to refrain from purchasing certain artificial intelligence chips from US chip giant Nvidia. This is according to a report by the Financial Times (citing sources familiar with the matter). Existing orders should preferably be canceled by the Chinese companies. Among those affected are TikTok's parent company Bytedance and the internet giant Alibaba. Specifically, the issue concerns chips with the model name RTX Pro 6000D. According to the US company, these semiconductors also contain technology from the advanced Blackwell model series, which is causing concerns in China. Furthermore, Beijing is reportedly initiating an investigation, claiming that Nvidia may have violated an anti-monopoly law due to the long-past acquisition of a company. The parties involved have so far not commented on these developments.

Nvidia squeezed between Washington and Beijing

The dilemma: Nvidia would like to export Blackwell-series chips to China! According to the US magazine, the company specifically designed the chip in question to circumvent existing export restrictions. Reportedly, it was the last product that the US company was allowed to sell in significant quantities in China. However, Washington has long opposed the delivery of high-tech chips from the US to the People's Republic for security reasons. And after prolonged hesitation, the government under US President Donald Trump only recently dropped its opposition to the sale of less powerful so-called H20 chips from Nvidia to China (albeit only in exchange for a share of the revenues). The H20 chips were also specially designed by Nvidia for the Chinese market, it is said. However, sales to the People's Republic are stalling because Beijing itself has security concerns. Nvidia's shares consequently fell slightly.

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