Wednesday, September 17, 2025

China Tightens Grip on AI Hardware, Nvidia Caught in the Crossfire

Beijing has ordered some of its largest technology companies to walk away from Nvidia’s latest server processors, deepening the rivalry between the two biggest players in the artificial intelligence race.

The Cyberspace Administration of China told firms including ByteDance and Alibaba to halt trials and future orders of the RTX Pro 6000D, a system built specifically for the Chinese market. The move comes only weeks after regulators signaled that domestic manufacturers should be favored over foreign suppliers.

Nvidia’s hardware has long set the pace in machine learning, and Chinese buyers had lined up for large shipments before the directive. Industry contacts say tens of thousands of units were in testing or awaiting delivery. Those projects are now frozen, leaving companies to fall back on local chip designs that remain less proven at scale.

This is not the first time Nvidia has been squeezed out of China. Earlier in the year, US restrictions barred sales of its most advanced processors without a license. Washington later floated a compromise that would allow shipments in exchange for a revenue share with the government, but so far Nvidia has struggled to turn that plan into actual deals.

For Beijing, the latest clampdown is part of a wider play. Officials want to build a self-sufficient chip industry and reduce exposure to foreign technology, even if the transition slows short-term progress. Regulators also accused Nvidia this month of violating domestic competition rules, underscoring how political and economic priorities are colliding in the semiconductor sector.

Both governments see semiconductors as the keystone of artificial intelligence. The United States leads in chip architecture, but China brings scale in workforce, minerals, and consumer adoption. By shutting out Nvidia, Beijing is betting that local firms can close the gap fast enough to keep pace in a contest that shows no sign of easing.


Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.

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by Irfan Ahmad via Digital Information World

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