Exclusive: China bans foreign AI chips from state-funded Data Centres, sources say

Reuters ^ | 11/05/2025

[SeekAndFind]

The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made artificial intelligence chips, two sources familiar with the matter told Reuters.

In recent weeks, Chinese regulatory authorities have ordered such data centres that are less than 30% complete to remove all installed foreign chips, or cancel plans to purchase them, while projects in a more advanced stage will be decided on a case-by-case basis, the sources said.

The move could represent one of China's most aggressive steps yet to eliminate foreign technology from its critical infrastructure amid a pause in trade hostilities between Washington and Beijing, and achieve its quest for AI chip self-sufficiency.

China's access to advanced AI chips, including those made by Nvidia, has been a key point of friction with the U.S., as the two wrestle for dominance in high-end computing power and AI.

U.S. President Donald Trump said in an interview aired on Sunday following talks with Chinese President Xi Jinping last week that Washington will "let them deal with Nvidia but not in terms of the most advanced" chips.

The latest move by Beijing, however, would dash Nvidia's hopes of regaining Chinese market share, while giving local rivals, including Huawei, yet another opportunity to secure more chip sales.

It is unclear whether the guidance applies nationwide or only to certain provinces, sources said. The sources did not identify which Chinese regulatory bodies had issued the order. They declined to be named due to the sensitivity of the matter.

Besides Nvidia, other foreign chipmakers that sell data centre chips to China include AMD, and Intel.

The Cyberspace Administration of China and the National Development and Reform Commission, two of Beijing's most powerful regulators, did not respond to requests for comment.

[whitney69]

Here come the tariffs.

wy69

[sten]

exactly what we should do

[cloudmountain]

Just remember: the Chinese government ALWAYS lies. It wants the world to think the way its chairman wants them to think.

[adorno]

China will not allow foreign AI chips in their platforms. The U.S. should follow suit, and not let any company sell AI chips to China. If China needs our AI chips, they will get them the same way they've achieved most other modern tech they have, by stealing the technology. Any company that allows the Chinese to get the tech, by giving it to them or selling it to them, or allowing them to 'steal' it, should be brought up on charges of espionage.

We would not sell defense secrets to China, so why allow them to have our AI, which is used on a lot of new weaponry being developed in the U.S.?