China Bans Foreign AI Chips From State-Funded Data Centres

The Chinese government has issued guidance requiring new data centre projects that have received any state funds to only use domestically-made AI chips, Reuters reported Wednesday, citing sources familiar with the matter. From the report: 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.

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