Chinese regulators have reportedly prohibited TikTok-owner ByteDance from deploying Nvidia chips in its new data centres. 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 significant because ByteDance was reportedly Nvidia’s biggest customer in China in 2025, buying more chips than any other domestic firm. The company had been swiftly securing computing power to support its extensive user base, especially as fears mounted over possible U.S. supply curbs. In August, regulators had told Chinese firms to stop making new orders for Nvidia AI chips and to start using homegrown processors instead.
A Nvidia spokesperson said 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.
