US EditionChina Bans Foreign AI Chips in State-Funded Data Centers
China bans foreign AI chips in state-funded data centers, aiming for self-reliance amid US trade tensions; over $100 billion invested in these projects since 2021, Reuters reports.
- In recent weeks, China ordered all new state-funded data centres to use only domestically produced artificial intelligence chips, in one of Beijing's most sweeping moves, two sources said.
- U.S. export controls prompted Beijing to push for semiconductor self-sufficiency after Washington's 2019 export bans limited China’s access to advanced chips.
- Several projects have been suspended after regulators instructed that data centre projects less than 30% complete must remove foreign chips or cancel plans, with state funding totalling more than US$100 billion since 2021.
- The move hands advantage to domestic suppliers like Huawei Technologies, Cambricon, Moore Threads, and Enflame, while foreign firms such as Nvidia, AMD, and Intel face exclusion from lucrative government-backed projects.
- Some advanced chips remain available via grey-market channels, and developers continue to rely on Nvidia's software ecosystem despite its market share plunging to nearly zero this year.
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Their vulnerabilities have provoked regulatory reactions in various countries. The exposure of sensitive information and alignment with state interests generate international concern. The debate on privacy and technological sovereignty is intensifying.
China slashes big data centers’ electric bills
China is helping cut energy bills by up to half for some of the largest data centers using domestic chips rather than foreign ones, the Financial Times reported. The subsidies from local governments come as tech giants like Alibaba, Baidu, and Tencent faced higher electricity costs after Beijing in September banned certain Nvidia chips, which are more energy-efficient than their Chinese counterparts.Chinese companies have in recent years been ic…
China Bans Foreign AI Chips From State-Funded Data Centres, Sources Say
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
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- 35% of the sources are Center, 35% of the sources lean Right
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