Why is Beijing freezing NVIDIA access to the Chinese market

According to Beijing, Beijing has stopped buying another segment of artificial intelligence from NVIDIA, and freezing it from the market – which the move industry experts say the increasing confidence in the country in local chips and an attempt to obtain commercial influence.

Just a few months ago, when Jensen Huang announced, from China, that the United States will rise Allow her to resume sales Of the H20 graphics processing units from China, which reflects a previous stop on its exports.

At that time, Huang also unveiled the new GPU of RTX Pro on the Chinese market, which was specially designed for smart factories and logistical services of artificial intelligence.

But Nafidia’s fortunes overturned in August, when it was reported that the organizers in China began assigning technology companies to stop the purchases of H20s in NVIDIA while awaiting a review of national security.

Now the mandate has been expanded to the RTX Pro 6000D chip from NVIDIA, which makes the company unable to sell any products to Chinese customers, according to A. a report By financial times on Wednesday.

This comes after the Chinese organizers said on Monday that Nvidia was Voluntees the anti -monopoly law in the countryAccording to the initial investigation, adding that they will continue to achieve them.

While the exact motives of China’s actions against NVIDIA are still unclear, technician and geographic analysts say that developments show that China has become more confident in its ability to make artificial intelligence chips.

the I mentioned The reasons for the intervention of the Chinese organizers in H20 were the need to review national security about fears that NVIDIA chips could be equipped with some tracking systems – an idea proposed by American lawmakers.

Experts described this step as part of Beijing’s efforts aimed at encouraging Chinese artificial intelligence companies Explore local alternativesAlthough they expect exports will eventually be cleared due to the high demand of Chinese artificial intelligence players.

Meanwhile, some Chinese artificial intelligence companies indicated that they would ask for tens of thousands of RTX Pro 6000D, and began testing work and checking with NVIDIA server suppliers until they were asked to stop such activities, according to FT reports.

However, the country’s organizers prevented the access to NVIDIA chips after summoning local artificial intelligence makers and concluded that they had reached the same performance of the products of the American company made, according to FT.

However, the performance is not the only challenge facing artificial intelligence chips in China. Analysts claim this The capacity is also a major barrierWith the inability of the local industry to produce enough chips on a large scale.

Reporting From FT indicates that Beijing has also become more confident in this field, as local chip makers seek to three times the total production of processors in the country next year.

“All these modern measures show that China has much greater confidence in its local sector more than they are used to,” said Chengwan Lin, a great analyst in China in Bernstein.

In April, the Semianlysis Research Company found that the latest Cloudmatrix system from Huawei was able to outperform the NVIDIA competitive AI account on some standards-although each climb chip is offered about a third of the NVIDIA processor. Huawei built its interest through its existence Five times the number of chips Associated together.

Meanwhile, the Chinese company Deepseek hinted from the Chinese AI last month that the latest model of artificial intelligence would be compatible with the “next generation” artificial intelligence chips in the country. China Albaba and Bido It is said I started to use domestic designer chips to help train their artificial intelligence models, and partially replace them by NVIDIA.

However, analysts are skeptical of China’s ability to reduce its dependence on NVIDIA chips.

“With regard to the preparedness of local chips in China, I think it is misleading to indicate that the country can provide artificial intelligence at the current level only with local alternatives and without systematic NVIDIA offers,” Rai Wang, Research Director of Semiconductor, Supply and Emerging Technology Series at Futurum Group, told CNBC.

The United States indicated that it might even allow even Nvidia chips are more advanced From H20 on the Chinese market.

Under Joe Biden Administration, export controls were increasingly tightened on advanced chips with the aim of preventing China from reaching the best American technology. This trend after accelerating the initially under Trump’s management is now the opposite.

According to Reva Goujon, Director of Rhodium Group, by rejecting H20 and RTX Pro, Beijing can look to create an opportunity to negotiate access to advanced graphics processing units.

She added that it is likely that it is not a coincidence that it comes amid the construction of the leverage by China this week, in reference to the latter Achieving the fight against dumping In imports of some analog chips from the United States

“When Beijing tests Trump’s transactions, it must build its own influence,” she said.