• Chinese regulators have formally banned ByteDance, Alibaba, and Tencent from purchasing or testing Nvidia AI chips for new data centers
  • The directive from the Cyberspace Administration of China (CAC) specifically targets Nvidia's H20 and RTX Pro 6000D models
  • The move accelerates China's push for technological self-reliance amid ongoing U.S.-China semiconductor tensions

Chinese regulators have taken the extraordinary step of formally blocking ByteDance and other major tech firms from deploying Nvidia artificial intelligence chips in their new data centers, according to people familiar with the matter. The Cyberspace Administration of China issued the directive in September 2025, ordering ByteDance, Alibaba, and Tencent to halt all purchases and testing of Nvidia's AI chips, including the H20 and RTX Pro 6000D models.

The ban represents a significant escalation in China's technology sovereignty campaign and marks a formal prohibition after months of increasing restrictions and discouragement from Beijing. Regulators have mandated that companies use domestic alternatives instead, dealing a blow to Nvidia's efforts to maintain its foothold in the critical Chinese market.

"The regulatory environment has become increasingly clear - domestic solutions are the only path forward for new AI infrastructure," said one executive at a affected company who asked not to be identified discussing sensitive matters. The person noted that while existing installations using Nvidia hardware can continue operating, all new data center deployments must use Chinese-made chips.

ByteDance, which operates TikTok and relies heavily on AI for its content recommendation engines, had been stockpiling Nvidia chips ahead of anticipated restrictions. The company reported record revenues in 2024 driven by TikTok's global growth and expanding cloud services, with its valuation exceeding $250 billion. Despite this financial strength, the ban presents immediate challenges for scaling AI infrastructure.

The State Administration for Market Regulation had previously raised anti-monopoly concerns related to Nvidia's acquisition of Mellanox, adding another layer to the regulatory pressure. This formal ban comes despite the Trump administration's 2025 policy reversal that would have allowed limited chip sales to China with a 15% revenue share to the U.S. government.

Chinese domestic chipmakers including Huawei, Cambricon, and Alibaba's T-Head are positioned to benefit from the forced transition. Huawei recently announced development of a "supernode" computing cluster using only domestic chips, highlighting the industry's rapid adaptation to the new reality.

Representatives for ByteDance and the Cyberspace Administration of China did not respond to requests for comment. Nvidia declined to comment on specific regulatory actions but reiterated its commitment to complying with all export control regulations.

The transition won't be seamless. Industry experts note there remains a significant performance gap between domestic alternatives and Nvidia's cutting-edge AI processors. This could temporarily slow innovation and increase costs for Chinese tech companies racing to compete in global AI markets.

Correction: An earlier version of this article misstated the specific Nvidia chip models affected. The ban applies to H20 and RTX Pro 6000D models.