China has reportedly told its biggest tech players to stop buying Nvidia processors. The Financial Times said the order came from the Cyberspace Administration of China. Companies named include Alibaba and ByteDance. The move targets the RTX Pro 6000D, a chip Nvidia created for the Chinese market after earlier U.S. restrictions.
Huang Speaks Out
Nvidia chief executive Jensen Huang commented while in London. He called the report disappointing but said the decision reflects politics, not business. “We can only serve a market if the country wants us to be,” he noted.
Huang pointed to Nvidia’s 30-year presence in China, describing it as “a roller coaster.” He added that financial analysts have been told not to include China in their revenue models, given how uncertain the rules have become.
U.S. Rules in the Background
Washington has already limited exports of advanced AI chips. Officials said the controls were needed for security reasons. In August, Nvidia struck a deal with the Trump administration. It allowed sales of H20 processors to China in return for sending 15% of revenue back to the U.S. Treasury.
The latest directive from Beijing undercuts that arrangement. It shows how quickly trade deals can unravel once politics enters the equation.
Another Layer: Antitrust Probe
China has also opened an antitrust investigation into Nvidia. The case involves its earlier acquisition of Mellanox, an Israeli networking company. The probe adds to the uncertainty around Nvidia’s operations in the country.
Focus Shifts to Europe
Despite setbacks in Asia, Huang underlined the importance of China’s AI sector. He said the market is large, energetic, and has long been part of Nvidia’s business. At the same time, the company is expanding elsewhere.
In the U.K., Nvidia announced an £11 billion investment in AI infrastructure. The news came during a state visit by U.S. President Donald Trump. Microsoft, Google, and Salesforce also revealed multi-billion-pound projects, signaling that London wants a bigger role in global AI.
Key points
- China’s Cyberspace Administration reportedly told firms like Alibaba and ByteDance to stop purchasing Nvidia’s RTX Pro 6000D AI chip.
- Nvidia CEO Jensen Huang called the move “disappointing,” stressing that political decisions shape the company’s role in China.
- The U.S. previously allowed limited exports of Nvidia’s H20 chips under a deal requiring 15% of sales revenue to go to Washington.
- Beijing’s action undermines that deal and comes as China also launches an antitrust probe into Nvidia’s Mellanox acquisition.
- Nvidia is shifting focus to other markets, announcing a £11 billion AI investment in the U.K. alongside similar commitments from U.S. tech giants.
The Bigger Picture
Nvidia’s China outlook is uncertain. Between export bans, regulatory probes, and shifting political ground, the risks are obvious. By pouring money into Europe and other regions, Nvidia is looking to reduce its exposure to those risks. The episode shows how deeply semiconductors now sit inside the wider U.S.–China rivalry.
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