China has apparently banned companies from buying Nvidia and AMD chips

New news suggests that the Chinese government has told companies to refrain from buying Nvidia and AMD artificial intelligence chips.

According to a new report by The Information, the Chinese government told Betting, Alibaba and Tencent not to buy the Nvidia H20 artificial intelligence chips. These chips are a weakened example of the more powerful Nvidia chips designed specifically for the Chinese market due to US export constraints.

China prevents artificial intelligence chip from Nvidia and AMD

The Chinese government has apparently advised domestic companies to refrain from buying these chips for security reasons. While it was previously thought that the order issued by the Chinese regulator was recommended, some sources say the order has required companies to suspend the H20 chips from NVIDIA.

USA.webp” alt=”China Nvidia” class=”wp-image-1825932″ />

The Chinese regulator is concerned about the back doors in artificial intelligence chips that allow Washington to remotely access these chips and even turn it off. Nvidia has rejected any back on its export chips to China, but Chinese officials appear to have not been convinced.

The “Action Action Action Action” plan, recently announced by Donald Trump, has a dedicated section on the back of all export chips to China. Prior to the initial export restrictions, China was keen on the H20 chip, and even the Chinese military was keen to use these chips. But now China’s regulatory agencies are hesitant to enter the new chips and their backs.

Nvidia was able to obtain its export of artificial intelligence chips to China after months. Of course, the US government earns 5 % of the NVIDIA and AMD chips in the Chinese market in exchange for the license. The ban on the import of Nvidia and AMD chips into China can cause a heavy financial blow to the two companies.