China bans foreign AI chips from state-funded data centres

THE CHINESE GOVERNMENT has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, two sources told Reuters.

- REUTERS

In recent weeks, Chinese regulatory authorities have ordered such data centres that are less than 30% complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage will be decided on a case-by-case basis, the sources said.

The move could represent one of China’s most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a pause in trade hostilities between Washington and Beijing, and achieve its quest for AI chip self-sufficiency. China’s access to advanced AI chips, including those made by Nvidia, has been a key point of friction with the US, as the two wrestle for dominance in high-end computing power and AI.