China's cyber and industrial regulators have issued informal notices to major tech firms, urging them to halt new orders for NVIDIA's H20 AI chips. The move follows remarks by NVIDIA head Howard Lutnick that the United States intentionally supplies China with lower‑tier chips. The United States had previously blocked, then later permitted, shipments of the chips. In response, Chinese authorities are encouraging the use of domestic chips and have warned of potential fines for non‑compliance. Meanwhile, NVIDIA is reportedly developing a new, lower‑performance chip for the Chinese market based on its Blackwell architecture.
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