China Directs Tech Giants to Halt Nvidia AI Chip Purchases Amid Trade Tensions

China's Cyberspace Administration has ordered major technology firms, including ByteDance and Alibaba, to cease procurement of Nvidia's AI chips and cancel existing orders. The MOVE signals Beijing's push for technological self-reliance as U.S.-China trade tensions escalate.

Nvidia's China-specific RTX Pro 6000D chips, already facing lukewarm demand, are now barred from testing and deployment. The semiconductor giant's shares dipped 1% following the announcement, reflecting market concerns over lost revenue in its third-largest market.

CEO Jensen Huang expressed disappointment, noting the chips were designed specifically to support China's AI development. Analysts suggest the ban may accelerate China's domestic chip production capabilities while creating short-term headwinds for Nvidia.