TLDR
- China’s Cyberspace Administration ordered tech companies to stop buying Nvidia’s AI chips designed for the Chinese market
- Nvidia CEO Jensen Huang expressed disappointment over the reported ban during Trump’s UK state visit
- Nvidia previously paid 15% of Chinese revenues to US government under deal allowing chip sales to China
- China opened anti-monopoly investigation into Nvidia over its Mellanox acquisition this week
- Nvidia announced £11 billion investment in UK AI infrastructure as part of new tech partnership
China has ordered its major technology companies to halt purchases of Nvidia’s artificial intelligence chips, according to reports from the Financial Times. The directive from China’s Cyberspace Administration specifically targets Nvidia’s RTX Pro 6000D chips, which were manufactured for the Chinese market.
Nvidia CEO Jensen Huang expressed disappointment over the development during a press briefing in London. He was accompanying US President Donald Trump on his state visit to the UK when the news broke.
“We can only be in service of a market if the country wants us to be,” Huang told reporters Wednesday. “I’m disappointed with what I see, but they have larger agendas to work out between China and the United States.”
The ban affects major Chinese tech companies including ByteDance, Alibaba, Tencent, and DeepSeek. These companies had previously been ordering Nvidia chips before receiving the directive to stop purchases.
Nvidia shares dropped more than 1% in premarket trading following the news. The company has advised financial analysts not to include China in their forecasts due to ongoing geopolitical uncertainties.
The chip ban represents another setback for Nvidia’s business in China, which Huang described as “a bit of a roller coaster.” The US had previously imposed restrictions on Nvidia’s AI chip exports to China over national security concerns.
Recent US-China Chip Deal Now Under Pressure
In August, the Trump administration struck a deal allowing Nvidia to receive export licenses for its H20 AI chips. Under this agreement, Nvidia pays 15% of its Chinese revenues to the US government in an unprecedented arrangement.
Trump had reversed earlier chip export bans to China in July, making the latest Chinese directive particularly striking. The president is expected to speak with Chinese President Xi Jinping on Friday.
China’s market regulator also opened an anti-monopoly investigation into Nvidia this week. The probe examines Nvidia’s acquisition of Mellanox, an Israeli company that creates network solutions for data centers and servers.
UK Investment Announced During State Visit
Despite the China setbacks, Nvidia announced £11 billion in UK AI infrastructure investment during Trump’s visit. The investment includes supplying chips to the Stargate UK data centre opening in north-east England.
Other US tech giants including Microsoft, Google, and Salesforce also announced multi-billion dollar AI investments in the UK. These announcements came as part of a new tech partnership between the US and UK.
Huang stressed that China remains important to Nvidia despite current tensions. “The Chinese market is important. It’s large. The technology industry is vibrant. We’ve been in service of it for 30 years,” he said.
China has been developing its own AI chips as part of its strategy to rival US dominance in artificial intelligence technology. The US and China have been conducting trade talks in Europe this week as both sides navigate ongoing disputes.
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