China Pressures Companies to Choose Domestic AI Chips Over Nvidias

China is pressuring its companies to choose domestically produced AI chips over those made by Nvidia, as part of its strategy to bolster its own semiconductor industry and counter US sanctions. While not a complete ban, the government is guiding companies away from Nvidia`s H20 chips to support local AI chip makers and prepare for potential future US restrictions. This move aims to boost domestic companies like Cambricon and Huawei, echoing similar efforts in the electric vehicle sector. While the government encourages domestic chip use, it recognizes the need for high-quality AI systems and may tolerate the use of foreign chips if necessary. This policy has impacted Nvidia`s stock, despite the company`s attempts to comply with US export regulations.