China has issued new rules requiring data centres that receive government funding to use only domestically-made artificial intelligence chips, two sources familiar with the matter told Reuters. The move marks one of Beijing’s strongest efforts yet to remove foreign technology from its critical infrastructure and accelerate its goal of AI chip self-sufficiency.

Removal of Foreign Chips From New Projects

According to the sources, Chinese regulators have instructed data centre projects that are less than 30% complete to remove any installed foreign chips or cancel planned purchases. Projects at more advanced stages will be assessed individually. The new rule could significantly impact foreign chipmakers such as Nvidia, AMD and Intel, who have long supplied chips for China’s fast-growing AI

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