Chinese authorities reportedly asked domestic technology companies to pause orders for NVIDIA's H200 artificial intelligence chips.
Beijing implements this directive to bolster its domestic semiconductor industry. The strategy aims to reduce reliance on U.S. technology amid ongoing trade tensions.
The directive encourages local firms to prioritize Chinese-made AI chips. It also prevents the stockpiling of NVIDIA's high-performance processors. This pause allows the government time to finalize regulations and potential restrictions on chip use.
This development introduces significant uncertainty for NVIDIA's sales in the crucial Chinese market.