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China's Cyberspace Administration of China (CAC) has issued a directive explicitly prohibiting the country's leading technology companies, including ByteDance (owner of TikTok) and Alibaba, from procuring Nvidia's RTX Pro 6000D artificial intelligence chips. This represents a significant escalation in Beijing's campaign to sever its tech giants' reliance on US semiconductor technology and accelerate the adoption of homegrown AI processors.

According to sources familiar with the matter, the CAC informed companies this week to cease all testing and orders for the RTX Pro 6000D – a chip Nvidia specifically designed for the Chinese market following earlier US export restrictions. Several companies had reportedly planned orders for tens of thousands of these chips and were actively conducting verification tests with Nvidia's server suppliers. Those activities have now been halted.

"The message is now loud and clear," an executive at one affected tech company stated. "Earlier, people had hopes of renewed Nvidia supply if the geopolitical situation improves. Now it’s all hands on deck to build the domestic system."

This ban expands significantly beyond previous regulatory pressure focused primarily on Nvidia's other China-specific chip, the H20. It follows assessments by Chinese regulators involving domestic chipmakers Huawei and Cambricon, as well as tech giants Alibaba and Baidu (which develop their own AI accelerators). These assessments concluded that China's indigenous AI processors have reached performance levels "comparable to or exceeding" Nvidia's China-available offerings under current US export controls.

Strategic Shift Towards Domestic Supply
The CAC's move underscores a strategic pivot:
1. Forced Adoption: Beijing is actively compelling its tech champions to utilize domestic silicon, removing the option for significant Nvidia procurement.
2. Confidence in Local Chips: Regulators appear convinced that local alternatives, potentially led by Huawei's Ascend series, are now viable for large-scale AI workloads.
3. Scale Ambitions: Reports indicate China aims to triple its domestic AI processor output next year, aiming for self-sufficiency.

"The top-level consensus now is there’s going to be enough domestic supply to meet demand without having to buy Nvidia chips," an industry insider commented.

Nvidia's Position and Geopolitical Tensions
Nvidia CEO Jensen Huang acknowledged the difficult position, stating during a visit to London, "We can only be in service of a market if the country wants us to be... I’m disappointed with what I see. But they have larger agendas to work out, between China and the US, and I’m understanding of that. We are patient about it." Huang also noted plans to discuss Nvidia's China business with US officials.

The RTX Pro 6000D, launched in July during Huang's Beijing visit and positioned for applications like automated manufacturing, was effectively the last Nvidia product available in China in substantial volumes. The CAC's directive, coupled with earlier warnings against purchasing the H20 chip, effectively shuts the door on Nvidia's significant AI chip business with Chinese tech leaders. This intensifies the technological decoupling between the US and China, forcing global AI infrastructure development onto increasingly divergent paths.

Source: Financial Times (Adapted for technical context)