Beijing's internet oversight body has instructed major domestic technology corporations to abandon Nvidia artificial intelligence chip acquisitions and cancel pending orders as part of China's intensified effort to eliminate reliance on US technological components, the Financial Times reported Wednesday.
Nvidia's shares dropped 1% in early trading.
The instruction arrives after China recently charged the corporation with anti-monopoly law violations, highlighting the latest tension in trade disputes with Washington, the Financial Times noted.
China's Cyberspace Administration instructed companies like ByteDance and Alibaba this week to stop testing and ordering RTX Pro 6000D chips, the Financial Times reported, citing three informed sources. Nvidia's RTX6000D, its latest artificial intelligence chip custom-made for Chinese consumers, has attracted limited enthusiasm with major technology firms avoiding orders, Reuters reported earlier this week.
This new restriction surpasses earlier regulatory recommendations targeting the H20, Nvidia's previous China-adapted AI chip model, according to the Financial Times. Nvidia, Alibaba and ByteDance did not respond immediately to Reuters' comment requests.
Several companies had planned to order thousands of RTX Pro 6000D processors and had initiated testing with Nvidia's server partners before stopping work after receiving the CAC instruction, the Financial Times reported.
