Nvidia suffers heavy blow as China bans AI chip purchases

China in recent development has restricted other major tech companies from purchasing Nvidia’s AI chips in the midst of tech rivalry.

According to The Financial Times, the Cyberspace Administration of China (CAC) which is working as an internet regulator has ordered tech firms, such as ByteDance and Alibaba to dismantle the testing of Nvidia’s AI chips RTX Pro 6000D that are especially designed for the Chinese market.

In response to the ban, Jensen Huanf, the CEO of Nvidia, expressed his sheer disappointment over China’s move.

Jensen said, “the US needs to make sure that people can access this technology from all over the world, including China. The advance of human society is not a zero-sum game."

Despite China’s sweeping ban on tech giants, several companies showed willingness to order tens of thousands of Nvidia’s AI chips and pursue testing and verification processes with the chip-maker company.

The restriction came on the heels of the Chinese government’s investigation into the company’s violation of its antimonopoly law, which was focused on the H20 chip.

After the ban, the world’s leading chipmaker’s stock fell on Wall Street, giving Nvidia a major blow in the cloud computing market.