China’s internet regulator has ordered major tech companies to cease purchasing Nvidia’s AI chips, intensifying the U.S.-China tech rivalry. This directive impacts firms like ByteDance and Alibaba, halting orders and testing of Nvidia's RTX Pro 6000D, a chip designed for the Chinese market.

• Nvidia's shares fell 2.6% after the announcement, with China accounting for roughly 13% of its sales last year.
• CEO Jensen Huang expressed disappointment, attributing the decision to broader geopolitical issues between China and the United States.
• Beijing is encouraging reliance on homegrown alternatives like those from Huawei and Cambricon, believing domestic processors now match or exceed Nvidia's China-only chips.