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Nvidia Faces Fresh Setback as China Orders Tech Firms to Halt AI Chip Purchases

Nvidia chief executive Jensen Huang said on Wednesday that the United States and Beijing “have larger agendas to work out” following reports that China’s internet regulator has ordered leading technology companies to stop buying the American chipmaker’s AI products and cancel existing orders.

Successive United States administrations have imposed restrictions on China’s access to advanced chips, prompting Beijing to push domestic companies to reduce dependence on American suppliers. These curbs have affected industry leaders such as Nvidia, which has been a key player in the global AI hardware market.

The development comes only days after Beijing accused Nvidia of violating its anti-monopoly law, adding to ongoing tensions in the trade dispute with Washington. The latest move coincided with United States officials raising national security concerns during trade discussions with China in Madrid this week.

According to a report by a common news outlet, the Cyberspace Administration of China has directed companies including ByteDance and Alibaba to end their testing and cancel orders of Nvidia’s RTX Pro 6000D. The report cited three people with knowledge of the matter.

At a press conference in London, Huang responded to questions about the regulator’s order. “We can only be in service of a market if a country wants us to be,” he said. “I’m disappointed with what I see, but they have larger agendas to work out between China and the United States and I’m patient about it. We’ll continue to be supportive of the Chinese government and Chinese companies as they wish.”

Alibaba, ByteDance, and the Cyberspace Administration of China did not respond immediately to requests for comment.

The ban marks a tougher stance compared to earlier guidance from regulators, which focused on the H20 chip, a previous model designed specifically for the Chinese market. Nvidia’s latest product, the RTX6000D, has experienced only limited demand, with several major firms reportedly avoiding bulk purchases, according to reports earlier this week.

Several companies had initially planned to order tens of thousands of the RTX Pro 6000D and had started testing and verification with Nvidia’s server suppliers. However, after receiving the regulator’s directive, these firms told suppliers to halt the work, the report said.

This latest restriction is expected to further intensify the strain on Nvidia’s operations in China, one of its key international markets, while deepening the ongoing technology rift between Washington and Beijing.

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