China to Donald Trump: Sorry, we don’t want your ‘Obsolete’ Nvidia AI chips

China is reportedly pressuring major tech companies like Alibaba and ByteDance to reconsider their orders for Nvidia’s H20 AI chips even as Chinese regulators have asked tech firms to explain why they are purchasing Nvidia’s chips – which US President Donald Trump called ‘obsolete’ – instead of using domestic alternatives, suggesting that they want the Chinese tech companies to downsize their orders of H20 chips.

According to a report by Financial Times, this scrutiny has led some of the main buyers of the H20 to cut their orders. The development comes as various Chinese companies have been told to avoid using these AI chips, particularly for government-related projects.