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The internet regulatory body in China has forbidden the nation’s top technology firms from procuring artificial intelligence chips made by Nvidia, amidst Beijing’s escalating endeavors to foster its own sector and rival the United States.
Delo.ua reports on this referring to the Financial Times publication .
The Cyberspace Administration of China (CAC) has communicated to enterprises, including ByteDance and Alibaba, that they are required to cease evaluating and procuring the RTX Pro 6000D, Nvidia’s product tailored specifically for China, according to three individuals with knowledge of the matter.
Nvidia’s stock value declined by roughly 3% on Wednesday. Numerous companies had intended to order tens of thousands of RTX Pro 6000D chips and had already commenced assessment and validation procedures with Nvidia server vendors, but subsequent to the CAC directive, they instructed the suppliers to halt operations, the individuals stated.
This prohibition surpasses the regulator’s earlier instructions, which centered on the H20 chip, another Nvidia offering designed solely for China and frequently employed for AI purposes. This determination arises after Chinese regulatory bodies reached the conclusion that indigenous chips have now attained performance capabilities on par with Nvidia models sanctioned for use in China.
Nvidia’s CEO, Jensen Huang, conveyed on Wednesday during a meeting with journalists in London that he anticipates engaging in discussions regarding the potential for conducting business within China with Donald Trump, the U.S. President, during a state visit to the UK that evening.
“ We are only permitted to function within a market if the nation desires it. I am disheartened by what I observe. However, there exist broader political complexities between China and the US, which I comprehend. We are exhibiting patience , “ he remarked.
Beijing is intensifying pressure on Chinese technology firms to cultivate their own semiconductor domain and diminish their reliance on Nvidia to contend with the US in the realm of artificial intelligence.
“ The communication is now unequivocally explicit,” expressed an executive from a tech firm. “Previously, aspirations existed that Nvidia’s provisioning would recommence should geopolitical conditions ameliorate. Currently, all endeavors are concentrated on the establishment of a domestic system.” “
Nvidia initiated the production of chips specifically optimized for the Chinese market subsequent to former US President Joe Biden imposing a ban on the company from exporting its most potent products to China, aiming to constrain Beijing’s advancement in AI.
Chinese regulatory bodies recently convened with local chip manufacturers — encompassing Huawei and Cambricon, alongside Alibaba and the search engine giant Baidu, which are also developing their own semiconductors — to provide reports on how their products stack up against Nvidia’s Chinese models. As indicated by one of the individuals, the regulators inferred that Chinese AI processors have reached a performance standard analogous to or superior to Nvidia chips permitted by export restrictions.
