China's Buyers Shift Away from Nvidia's H20 Chips Following US Commerce Secretary's Comments

China's Response to U.S. Remarks: Beijing is restricting the sale of Nvidia’s H20 AI chip following comments by U.S. Commerce Secretary Howard Lutnick, which were perceived as insulting by Chinese officials.

Impact on Chinese Tech Firms: Major Chinese tech companies like Alibaba and ByteDance have either paused or reduced their orders for the H20 chip due to pressure from regulators after Lutnick's remarks.

Push for Domestic Chips: The Chinese government is intensifying efforts to promote the use of domestically produced chips, with regulators urging companies to abandon Nvidia products citing security concerns, despite Nvidia's strong rebuttal.

Future of Chip Orders: Some Chinese firms are delaying H20 chip orders while awaiting a potentially superior version of Nvidia's Blackwell chip, amidst ongoing discussions about banning foreign-made chips for AI inference applications.