China Ditching Foreign AI Chips? Report Says New Data Centers With Government Funding Must Rely On Local Ones

The move marks a significant effort by China to reduce its reliance on foreign technology in its key infrastructure sectors.

• Chinese authorities have instructed data centers that are less than 30% complete to remove all foreign-made AI chips.
• The move is part of a broader effort to achieve AI chip independence amid ongoing tensions with Washington. 

China has reportedly instructed that all new data centers receiving government funding must exclusively use locally produced artificial intelligence chips. 

According to a Reuters report, individuals familiar with the directive said that projects that have already installed foreign-made chips but are less than 30% complete have been told to remove them. 

Push For Technological Self-Reliance

The move marks a significant attempt by China to reduce its reliance on foreign technology in key infrastructure sectors, part of a broader effort to achieve AI chip independence amid ongoing tensions with Washington. 

The order comes as the U.S. maintains curbs on the export of advanced semiconductors, particularly those produced by Nvidia Corp. (NVDA), to prevent their potential use in military applications. 

Nvidia’s stock inched 0.9% lower in Wednesday’s premarket. On Stocktwits, retail sentiment around the stock remained in ‘bullish’ territory amid ‘high’ message volume levels. 

Get updates to this developing story directly on Stocktwits.<