China stipulates that state-funded data centres to use only domestic AI chips – report

It is reported that Beijing has issued a guidance that requires new data centre projects that have received any state funds to only use domestically developed AI chips. Thus, ruling out the use of foreign AI chips with authorities even ordering data centres that are less than 30% complete to remove all previously installed foreign chips.

Adding to that, the government has also order for said centres to cancel plans to purchase foreign chips as it appears that there is a continued fallout between the US and China on this matter at least.

For some context, most data centres in China do received some form of state funding in their setting up. So, this ruling will impact the majority of the development in this space. One of the sources say that this directive is already starting to have impact with a facility in the northwestern province now being suspended after earlier planning to deploy Nvidia chips instead.

The source also adds that the guidance issued will cover Nvidia’s H20 chips as well as B200 and H2000 processors. On the latter two, they have been banned by Beijing but had been widely available in China through backdoor channels. So, the government is moving to outright just ban their usage it would seem.

This article was written by Justin Low at investinglive.com.