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According to The Information, Chinese authorities have blocked TikTok owner ByteDance from using Nvidia chips in their new data centres. So, what should you know about it?
Washington might restrict supply soon
According to the same report, ByteDance is buying more Nvidia chips than any other Chinese company by 2025, in a bid to secure computing power for its more than one billion users, amid concerns that Washington may restrict supply.
Additionally, the ban underscores Beijing's efforts to reduce its dependence on US technology, especially after Washington tightened controls on exports of smart semiconductor chips to China. Last August, Chinese authorities reportedly asked local companies to stop new orders for Nvidia AI chips and encouraged them to switch to locally made processors.
“The regulatory landscape does not allow us to offer competitive data centre GPUs in China, thus losing that large market to our rapidly growing foreign competitors,” an Nvidia spokesperson told Reuters.
Moreover, Reuters reported earlier this month that the Chinese government has issued guidelines requiring new data center projects that receive any government funding to use only domestically made artificial intelligence chips, in line with the country's plans to build an alternative AI ecosystem and achieve self-empowerment of chips.
Stay tuned to TechNave.com for more updates.
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