China reportedly blocks ByteDance from using Nvidia chips in new data centres

Nvidia

Chinese regulators have reportedly prohibited TikTok-owner ByteDance from deploying Nvidia chips in its new data centres, according to a report in The Information cited by Reuters. Employees familiar with the situation told the publication that ByteDance has been instructed to avoid using Nvidia hardware in upcoming projects. The development signals Beijing’s growing determination to cut back reliance on US-made technology amid ongoing export restrictions imposed by Washington on advanced semiconductors.

The move is notable because ByteDance was reportedly Nvidia’s biggest customer in China in 2025, buying more chips than any other domestic firm. The company had been aggressively securing computing capacity to support its vast user base, especially as concerns rose that the United States could further curb supply. In August, regulators had already asked Chinese firms to stop placing fresh orders for Nvidia AI chips and urged them to begin adopting domestic processors instead.

A Nvidia spokesperson told Reuters that current regulations prevent the company from offering a competitive data centre GPU in China, effectively leaving the market open to foreign rivals that now face fewer restrictions. Earlier this month, Reuters also reported that Beijing issued guidance requiring any new data centre projects receiving state funding to use only domestically produced AI chips.

The developments come at a time when China is accelerating efforts to build a parallel AI ecosystem and strengthen self-reliance in semiconductor production. Although tensions with Washington are in a temporary lull, both sides continue to maintain strict controls over advanced chip technology.

Washington has already restricted sales of Nvidia’s most capable GPUs to China, allowing only scaled-down alternatives such as the H20. Nvidia introduced a China-specific model, the RTX6000D, but demand has remained subdued, with several major technology firms choosing not to place orders.

After a recent conversation with Chinese President Xi Jinping, US President Donald Trump said that Washington would permit China to “deal with Nvidia but not in terms of the most advanced” chips.