Summary: China’s internet regulator reportedly ordered top tech firms to halt purchases of Nvidia’s AI chips and cancel existing orders. Nvidia’s CEO, speaking in London, said Washington and Beijing have “larger agendas to work out.” Nvidia derived about 13% of sales from China last year.
Why it matters
If enforced, a halt would hit near‑term demand for U.S. accelerators in China and complicate global AI supply plans. It could also accelerate localization plays (domestic chips, model compression) and push more capacity into friendly markets—affecting pricing and lead times elsewhere.
Key facts
- Directive: reported instruction to suspend purchases and cancel orders for Nvidia AI chips.
- Impact: China accounted for ~13% of Nvidia revenue last year.
- Market: shares slipped on the reports; executives stress geopolitical context.
What to watch
Clarifications from China’s CAC; Nvidia shipment mix (H20/RTX6000D) and order backlogs; responses by AMD and Chinese accelerator vendors.