NVIDIA GPUs banned in China

Following the signing of the TikTok agreement, trade peace seemed to have been restored between the two world superpowers. However, negative news immediately arrived for NVIDIA and therefore also for the US government. A Chinese authority has ordered local companies to halt purchases of RTX Pro 6000D GPUs . CEO Jensen Huang may ask Donald Trump to intervene.

China only wants home-made chips

According to sources told the Financial Times, the Cyberspace Administration of China (CAC) has ordered local companies, including Alibaba and ByteDance, to stop purchasing NVIDIA's AI chips, specifically the RTX Pro 6000D GPU made by the Californian company specifically for the Chinese market.

Several Chinese companies had begun testing the GPU, introduced by NVIDIA in July, when the Trump administration reauthorized the sale of H20 GPUs. Following the CAC's order, the companies halted testing and will now also be required to cancel orders.

In late August , when rumors about the B30A GPU circulated, Chinese authorities advised against purchasing H20 GPUs after alleged insults from Commerce Secretary Howard Lutnick. The CAC allegedly imposed the ban to pressure Chinese companies to purchase only domestic AI chips with performance similar to or superior to NVIDIA GPUs.

CEO Jensen Huang said:

We can only serve a market if the country wants it. I'm disappointed by what I see. But they have broader plans to develop, between China and the United States, and I understand that. We're patient.

The purchase ban is obviously bad news for NVIDIA, as it stands to lose billions of dollars. It's also bad news for the U.S. government, which would have received 15% of the revenue .

Huang may seek Donald Trump's help in resolving the issue. A few days ago, China's antitrust authority accused NVIDIA of violating the law in connection with its acquisition of Mellanox.