China curbs Nvidia's chip orders amidst AI strategy shift

Chinese tech companies have been instructed to halt orders for Nvidia's H200 chips as the government considers making domestic AI chip purchases mandatory. Nvidia's CEO highlighted strong demand in China, following a recent U.S. policy allowing export with a 25% revenue-sharing tax.

Beijing has instructed several Chinese tech companies to stop placing orders for Nvidia's H200 chips this week, potentially mandating the purchase of domestic AI chips instead, according to sources cited by The Information.

Nvidia did not respond to Reuters' request for comment. Nvidia CEO Jensen Huang noted at the Consumer Electronics Show that China's demand for the H200 chip is robust.

Last year, the Trump administration approved the export of these chips to China under a new policy requiring a 25% revenue-sharing tax, marking a shift from previous restrictions on advanced AI technology exports.

(With inputs from agencies.)