![White House did not immediately respond to Reuters’ request for a comment [File] | Photo Credit: REUTERS](https://newspage360.com/wp-content/uploads/2025/11/2025-11-06T193750Z_1013529060_RC2BAGAOS6GW_RTRMADP_3_CHINA-USA-NVIDIA-1068x601.jpg "White House did not immediately respond to Reuters’ request for a comment [File] | Photo Credit: REUTERS")
Key Takeaways
- US blocks Nvidia’s scaled-down AI chip sales to China
- China mandates domestic chips for state-funded data centers
- Nvidia working on chip redesign to address US concerns
The United States government has decided to block Nvidia from selling its latest scaled-down artificial intelligence chips to China, according to a report by The Information. The decision represents a significant escalation in the ongoing technology trade restrictions between the two nations.
The White House informed federal agencies it will not permit the sales of Nvidia’s B30A chips, which are specifically designed to comply with previous export controls while still offering AI capabilities.
Chip Capabilities and Market Impact
The B30A chip can be utilized to train large language models when efficiently arranged in large clusters, a capability many Chinese companies require for their AI development projects. Nvidia had already provided samples of the chip to several Chinese customers before the ban was announced.
An Nvidia spokesperson told Reuters: “We have zero share in China’s highly competitive market for datacenter compute, and do not include it in our guidance.”
Nvidia’s Response and Regulatory Challenges
Nvidia is actively working on modifying the B30A’s design in hopes that the US administration will reconsider its stance. The California-based company faces challenges on multiple fronts as it navigates the complex US-China technology landscape.
Meanwhile, China has implemented its own countermeasures. Beijing recently issued guidance requiring all new data center projects that receive state funding to use only domestically developed chips.
China’s Domestic Chip Mandate
According to the new Chinese regulations, data centers that are less than 30% complete must remove all installed foreign chips or cancel plans to purchase them. Projects in more advanced stages will be reviewed on a case-by-case basis.
This guidance effectively shuts out Nvidia and its AI chips from a lucrative market segment, including advanced models under US export controls that are nevertheless available in China through grey market channels.
