China has ordered its technology companies to stop purchasing chips made by Nvidia as the country accelerates its own domestic production.
According to the Financial Times, the Cyberspace Administration of China (CAC), the body responsible for regulating the internet, has instructed major firms such as ByteDance, which owns TikTok, and Alibaba to stop using the American company’s chips.
Following the announcement, Jensen Huang, Chief Executive of Nvidia, said he was “disappointed“. “We will continue to be supportive of the Chinese government and Chinese companies as they wish,” he said at a press conference in London earlier this week.
Despite this, demand for chips from some Chinese firms has fallen, with several choosing not to integrate the technology into their servers, according to a report by Reuters.
The ban comes just days after Beijing accused Nvidia of breaching anti-monopoly laws, particularly in relation to the Nvidia H20, a chip designed specifically for the Chinese market.
