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Nvidia falls as Beijing discourages local companies from buying Nvidia chips

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Investing.com – Nvidia fell on Friday as Beijing pressures Chinese companies to buy artificial intelligence chips produced in China instead of Nvidia chips as part of an effort to boost the domestic semiconductor industry and mitigate the impact of U.S. restrictions, a Bloomberg report said Friday. Quoted from unnamed sources.

NVIDIA Corporation (NASDAQ:) is down 3% in recent trading.

Sources told Bloomberg that Chinese regulators are discouraging companies from buying Nvidia H20 chips, which are used to develop and deploy artificial intelligence models.

The new policy does not represent an outright ban on Chinese companies buying Nvidia chips, but rather a directive as Chinese regulators are keen to avoid curtailing AI startups in the country and escalating tensions with the United States, the sources said.

Nvidia declined Bloomberg’s request for comment. China’s Ministry of Commerce, Ministry of Information and Technology and Cyberspace Administration did not respond to Bloomberg’s faxed requests for comment.

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