⚖️ California passes AI Law

Author

Liam Gill
September 18, 2025

Beijing Blocks Nvidia Chips

Nvidia has been effectively locked out of China again, this time by Beijing itself. The Cyberspace Administration of China ordered local tech giants like ByteDance and Alibaba to stop buying and testing Nvidia’s RTX Pro 6000D server chips, according to the Financial Times. The directive follows earlier government discouragement in August and reflects China’s push to promote domestic AI chipmakers like Huawei and Alibaba, even though Nvidia remains the global leader in advanced semiconductors.

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Geopolitics Tightens the Noose

This ban underscores how Nvidia is being squeezed from both sides of the U.S.-China rivalry. Washington has already imposed licensing requirements and revenue-sharing rules on AI chip sales, costing Nvidia billions in lost revenue. Now, China’s retaliation effectively closes off one of Nvidia’s largest potential markets, leaving CEO Jensen Huang to strike a diplomatic tone. “We can only be in service of a market if a country wants us to be,” he said, while admitting he was “disappointed” but willing to wait.

Fragmented Markets, New Opportunities

For founders, the split creates a more fragmented global AI ecosystem — painful for companies betting on global scale, but potentially fertile ground for local alternatives. Chinese startups may benefit from state support and less foreign competition, while U.S. and European startups could see new demand as Nvidia doubles down outside China. The bigger lesson: when governments weaponize supply chains, entrepreneurs should expect volatility and build businesses resilient to sudden geopolitical shocks.

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