China 'bans foreign AI chips in data centres'

Order likely to affect Nvidia, AMD, Intel

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An Nvidia logo against a Chinese flag in a photo illustration.

(REUTERS)

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 familiar with the matter told 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 to achieve its quest for Al chip self-sufficiency amid a pause in trade hostilities between Washington and Beijing.

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.

US President Donald Trump said in an interview aired on Sunday following talks with Chinese President Xi Jinping last week that Washington will "let them deal with Nvidia but not in terms of the most advanced" chips.

The latest move by Beijing, however, would dash Nvidia's hopes of regaining Chinese market share, while giving local rivals, including Huawei, yet another opportunity to secure more chip sales.