A PYMNTS Company

China Orders Tech Giants to Stop Nvidia AI Chip Purchases

By  |  September 17, 2025

China’s internet regulator has directed leading domestic technology firms to stop buying and testing certain Nvidia processors, according to the Financial Times. Companies including Alibaba Group and ByteDance have reportedly been told to cancel existing orders for Nvidia’s RTX Pro 6000D chip.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    The decision marks an intensification of Beijing’s restrictions on U.S. semiconductors. Financial Times reported that prior to this directive, some Chinese firms had expressed interest in acquiring tens of thousands of units of the chip, which Nvidia designed to comply with U.S. export rules on advanced artificial intelligence hardware.

    Nvidia’s stock slipped in early trading following the news, losing about 1% after initially gaining, while rival Advanced Micro Devices also saw its shares dip.

    According to The Financial Times, the ban builds on earlier guidance from Chinese authorities advising companies to avoid Nvidia’s H20 chip, a lower-end model the Trump administration permitted for export earlier this year. Officials in Beijing now appear to be signaling greater confidence in the progress of domestic alternatives, encouraging local companies to rely more heavily on homegrown technology.

    Nvidia Chief Executive Officer Jensen Huang, speaking at a press briefing in London, acknowledged the mounting challenges. “I’m disappointed with what I see but they have larger agendas to work out between China and the United States,” he said. “We can only be in service of a market if the country wants us to be.”

    Related: China Says Nvidia Violated Antitrust Rules Amid Trade Talks

    Huang was in the UK as part of a technology-focused state visit with U.S. President Donald Trump, during which the administration unveiled plans to invest billions of dollars in infrastructure projects. The move comes at a time when Nvidia has become a central figure in disputes between Washington and Beijing over control of critical AI technology.

    The Financial Times also reported that Chinese regulators recently ruled Nvidia’s $7 billion purchase of Mellanox Technologies violated anti-monopoly laws, adding to the pressures facing U.S. chipmakers. Beijing has separately launched an antidumping investigation into certain semiconductors manufactured by American companies including Texas Instruments.

    Industry analysts told Financial Times that Beijing’s latest measures highlight its desire to accelerate the development of a domestic AI supply chain, even if that means reducing access to foreign technology in the short term.

    The RTX6000 series chip, while not among Nvidia’s flagship offerings, was specifically tailored to meet the requirements of China’s restricted market. Nevertheless, domestic players such as Alibaba and Baidu have been working to build their own processors, with Alibaba already securing high-profile partnerships for its “T-Head” chips.

    President Trump is expected to meet with Chinese leader Xi Jinping later this week in Madrid, where trade and technology tensions are likely to be central to the talks.

    Source: The Financial Times