Chinese Regulators Block ByteDance from Using Nvidia Chips in Data Centers
In a move that highlights Beijing's efforts to reduce its reliance on US technology, Chinese regulators have barred TikTok-owner ByteDance from deploying Nvidia chips in new data centers. The tech publication The Information first reported the development earlier this week, citing two company employees.
ByteDance had purchased more Nvidia chips than any other Chinese firm in 2025 as it sought to secure computing power for its billion-plus users amid concerns that the US could curb supply. However, with the ban now in place, ByteDance will be unable to offer competitive data center GPUs in China, leaving the market open to rapidly growing foreign competitors.
This latest move is part of a broader campaign by Beijing to build an alternative AI ecosystem and achieve chip self-sufficiency. Chinese regulators have already issued guidance requiring new data center projects that have received state funds to only use domestically-made artificial intelligence chips. The government has been accelerating its efforts in this area despite ongoing trade tensions with Washington.
The US has barred sales of Nvidia's most advanced chips to China, allowing only scaled-down versions, such as the H20. Despite the introduction of a China-specific chip, demand for it has been limited, with some major tech firms opting not to place orders.
Nvidia stock saw an 1.8 percent increase in midday trading following news of the ban. The move is seen as a significant blow to ByteDance's plans to secure computing power and may impact its ability to compete in China's rapidly growing data center market.
In a move that highlights Beijing's efforts to reduce its reliance on US technology, Chinese regulators have barred TikTok-owner ByteDance from deploying Nvidia chips in new data centers. The tech publication The Information first reported the development earlier this week, citing two company employees.
ByteDance had purchased more Nvidia chips than any other Chinese firm in 2025 as it sought to secure computing power for its billion-plus users amid concerns that the US could curb supply. However, with the ban now in place, ByteDance will be unable to offer competitive data center GPUs in China, leaving the market open to rapidly growing foreign competitors.
This latest move is part of a broader campaign by Beijing to build an alternative AI ecosystem and achieve chip self-sufficiency. Chinese regulators have already issued guidance requiring new data center projects that have received state funds to only use domestically-made artificial intelligence chips. The government has been accelerating its efforts in this area despite ongoing trade tensions with Washington.
The US has barred sales of Nvidia's most advanced chips to China, allowing only scaled-down versions, such as the H20. Despite the introduction of a China-specific chip, demand for it has been limited, with some major tech firms opting not to place orders.
Nvidia stock saw an 1.8 percent increase in midday trading following news of the ban. The move is seen as a significant blow to ByteDance's plans to secure computing power and may impact its ability to compete in China's rapidly growing data center market.
I mean, i get china wanting to reduce their reliance on us tech and all that but nvidia is like a key player in the whole ai game right now! 
what's next, are they gonna block us from using google chips or something? 
i hope not lol. anyway, this just goes to show how much power china has behind closed doors and how hard it is for them to change their tech plans now that things have been set in motion. i'm a bit worried about byte dance's future tbh, they're like our tik tok and if they can't compete with local tech firms, that's just bad news for us users! 
. i feel bad for the employees who are gonna get affected by this ban. but at the same time, it shows how china is taking matters into its own hands and not relying on us tech companies anymore 
. i hope byte dance finds a way to compete with foreign firms tho 
. But, it also means that ByteDance will have a hard time competing in China's data center market if they can't use Nvidia chips 
. Do you think this move will actually achieve China's goals of chip self-sufficiency, or is it just a temporary measure to appease the government 
?
"The ones who do not learn from history are doomed to repeat it." 
Nvidia's US-China chip sales ban has created a huge hole for ByteDance, which had planned to use them to keep up with rival firms like Alibaba's cloud computing unit. Now they'll be playing catch-up in China's data center market 
Companies gotta adapt to new rules & regulations. This move is part of a bigger plan to build an AI ecosystem, which could actually benefit China in the long run 
️. Maybe this is an opportunity for other Chinese companies to step up & compete with Nvidia 
... who knows? 
maybe we'll see some awesome chinese tech companies rise from the ashes 
. But why would they need Nvidia chips anyway? They're basically saying that US tech is too reliable for them, which kinda makes sense considering all the trade tensions and whatnot.
. And it's not like they're just banning Nvidia chips, they're also looking at other Chinese firms that might be using them.
. Anyways, it's definitely got me thinking... 
, Nvidia chips are pretty popular worldwide, what's the point of blocking them? doesn't seem very smart for their own economy...
. I mean, Nvidia chips are pretty much a must-have for any serious data center, and now ByteDance is stuck with scaled-down versions that just aren't cutting it. This should be interesting to watch, will other foreign competitors like AMD or Intel fill the gap? 
! so china is trying to cut ties with the us tech scene and build their own thing... it's kinda cool to see them taking matters into their own hands 
but at the same time, like, how will that affect byte dance and tiktok? i mean, they're already struggling with the whole data center gpu issue 
. They must've been counting on those Nvidia chips to keep up with all their users 
. China's got a lot of talent and resources, maybe ByteDance can find a way to make it work? 
. now they're gonna have to rely on other companies for gpu power? that's a major blow. but at the same time, it's kinda cool that china is trying to be more self-sufficient and less reliant on us tech 
and build its own alternative AI ecosystem 
still not sure how this will play out in practice... 
, and now they're blocking byte dance from using nvidia chips in their data centers? that's a big deal! 
, it's gonna be hard for them to compete with foreign competitors who can use the good stuff 