China Mandates Domestic AI Chips for State-Funded Data Centers, Sources Reveal

China has mandated that state-funded data centers exclusively use domestically-made artificial intelligence chips, impacting foreign suppliers like Nvidia and reshaping the tech landscape.

• The Chinese government directed that new data center projects receiving state funds must utilize only domestically-produced artificial intelligence chips, according to two sources familiar with the matter.
• Chinese regulatory authorities have ordered data centers less than 30% complete to eliminate foreign chips or halt acquisition plans, while advanced projects will undergo individual evaluations.
• This policy shift comes amid rising tensions between China and the U.S., particularly affecting companies like Nvidia, which has been a major supplier of AI chips.