China Urges Local Firms to Avoid Nvidia AI Chips, Stock Drops 3.50%

Sep 27, 2024, 06:34 PM

China has reportedly urged local companies to avoid purchasing Nvidia's AI chips, such as the H20 model, in favor of domestic alternatives like those produced by Huawei and Cambricon. This guidance, rather than an outright ban, is part of Beijing's broader strategy to bolster its own semiconductor industry and reduce reliance on U.S. technology. The move aims to support local chipmakers while avoiding significant disruptions to Chinese AI startups. Nvidia's stock has been impacted, dropping 3.22% and extending losses to 3.50% following the news.