Yeliz Akmaca 
China has instructed leading technology companies to stop using Nvidia AI chips and cancel existing orders. ByteDance and Alibaba are among the firms most directly affected by this decision. China’s directive could directly impact AI and crypto mining infrastructure.
China’s Nvidia Chip Ban and Its Reasons
The Cyberspace Administration of China (CAC) has ordered ByteDance and Alibaba to halt the use of the RTX Pro 6000D model and cancel current orders. The regulator also demanded that companies suspend testing and validation processes with their suppliers. The ban is not limited to the RTX Pro 6000D; previous warnings regarding the H20 chip remain in effect.
The main goal of the ban is to strengthen China’s domestic semiconductor industry and reduce dependency on U.S. technologies. This move aligns with China’s strategy to reshape supply chains amid ongoing technology and trade disputes with the U.S.
Impact on Crypto Markets
This decision could negatively affect Nvidia’s revenue expectations in the Chinese market and cause a decline in its stock price. Nvidia chips are critical for both AI applications and crypto mining. China’s move could reduce demand for mining hardware, leading to short-term volatility in cryptocurrencies like Bitcoin and Ethereum. Additionally, the introduction of domestic DeepSeek chips could shrink Nvidia’s market share and lower equipment prices.
Domestic Chip Production and AI Performance
China has confirmed that local manufacturers provide performance comparable to Nvidia models. Alibaba, Baidu, Huawei, and Cambricon reported their products to regulators in comparison with Nvidia’s China-specific chips.
For instance, Alibaba’s T-Head unit supplies 72% of the chips used in China Unicom’s Xining data center, which has 3,579 petaflops of computing power and aims to reach 20,000 petaflops by 2026. According to the Financial Times, Chinese manufacturers plan to triple AI processor production next year, ensuring local supply meets demand without reliance on Nvidia chips.
Industry officials noted, “Now everyone is accelerating efforts to build domestic systems.”
Nvidia and Its Future in China
Nvidia developed China-specific products like the RTX Pro 6000D in response to U.S. restrictions on high-performance AI chip exports during former President Joe Biden’s administration. CEO Jensen Huang introduced these chips during a visit to Beijing and announced eased H20 export restrictions.
Despite this, the CAC warned companies not to purchase H20 chips and requested explanations for using domestic products. The RTX Pro 6000D remains the last high-performance Nvidia product still allowed for sale in China. Alibaba, ByteDance, CAC, and Nvidia have not yet responded to comment requests.
Key Points
- CAC orders ByteDance and Alibaba to stop buying Nvidia chips
- Ban aims to promote domestic semiconductor production
- Chinese AI chips have achieved comparable performance to Nvidia chips
- Domestic production will triple next year
- RTX Pro 6000D is the last high-performance Nvidia product specifically made for China
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