Nvidia CEO Jensen Huang revealed his disappointment on Wednesday over reports suggesting that Beijing has barred prominent Chinese technology firms from purchasing his company’s advanced chips. These cutting-edge components are critical to the rapidly advancing field of generative AI.
California-based Nvidia has ascended to become the world’s most valuable company by market capitalization, largely due to its specialized chips. China represents a significantly important market for the tech giant.
However, the company finds itself increasingly entangled in the ongoing geopolitical tensions between the United States and China.
The U.S. government already restricts Nvidia from exporting its most sophisticated products to China. Last month, Washington confirmed that Nvidia would be required to remit 15% of its revenue from specific AI chip sales in China back to the U.S. government.
In response, Beijing has cited national security concerns regarding Nvidia’s chips, actively encouraging Chinese businesses to prioritize domestic semiconductor suppliers.
The latest twist, as reported by the Financial Times on Wednesday, indicates that China’s internet regulator has instructed major companies like Alibaba and ByteDance to cancel orders for Nvidia’s RTX Pro 6000D chips, which were specifically designed for the Chinese market.
Addressing the Financial Times report at a London press briefing, Huang stated, “We can only serve a market if a country desires our presence.”
He continued, “I am disheartened by these developments, but both China and the United States have broader agendas to navigate. I remain patient and will continue to support the Chinese government and Chinese companies as they wish.”
Sources cited by the Financial Times suggest that the Cyberspace Administration of China issued a directive for companies to cease all testing and purchasing of Nvidia’s restricted chips.
This alleged ban follows a decision by Chinese regulators on Monday, which found Nvidia in violation of the country’s antitrust regulations.
Industry observers believe Beijing’s efforts to reduce Chinese tech companies’ reliance on Nvidia’s offerings are part of a larger strategy to boost domestic production from local players, such as Huawei.