China prohibits the technology companies for Chips Nvidia: Report

CEO Jensen Huang is expected to discuss developments with the president of the United States, Donald Trump in London on Wednesday.

China has prohibited its main technology companies from buying Nvidia chips as the country increases national manufacturing.

The Financial Times reported that the country’s Internet regulator, the Cyberspace Administration of China (CAC), told the technological giants, including Bytedance, the owner of Tiktok, and the Electronic Commerce giant Alibaba, to end the tests of a IA chip that the chip giant based in Santa Clara, California was explicitly made for the Chinese market.

The CEO of Nvidia, Jensen Huang, said he was “disappointed” by the report.

“We will continue to support the Chinese government and Chinese companies as they wish,” he said at a press conference in London.

Several companies had indicated that tens of thousands of RTX Pro 6000D chips and had begun to prove and verify the work of NVIDIA servers suppliers.

Despite the tests, there was a limited demand of the chip in China with the main technological giants who choose not to use the chip in their products, according to a report by the Reuters news agency earlier this week.

In Wall Street, Nvidia’s actions fell on the ban on the second largest cloud computing market in the world. At 11:30 am in New York, (15:30 GMT), it dropped 2.6 percent.

Growing tensions

The prohibition occurs days after the Chinese government accused the company of violating its antimonopoly law, which focused on the H20 chip, an earlier version that was also explicitly designed for the Chinese market.

It also occurs when the United States and China concluded their last round of commercial conversations in Madrid this week, which led to the White House that announced that private parties would take care of American Tiktok operations, leaving the Matrix Bytedance company with a minority participation.

The successive US administrations have restricted China’s access to advanced chips, which led Beijing to pressure national companies to move away from US suppliers to the detriment of industry leaders such as NVIDIA.

Huang is in London at the same time as the visit of the state of the president of the United States, Donald Trump, there, since Nvidia supplies the United Kingdom’s arm of Stargate, a infrastructure project of the backed by Trump directed by OpenAi, with tens of thousands of chips of processors while building data centers.

Huang said he hopes to discuss the climbing with the president in a state banquet on Wednesday night.

“I will see it tonight, and it will probably ask me,” Huang said when asked if he had spoken with Trump about the developments.

Huang emphasized that the cloud computing giant will be “support” of both countries while “classifying these geopolitical policies.”