Nvidia falls as Beijing discourages local companies from buying Nvidia chips

-- Nvidia fell Friday as Beijing is US Forex Grouppressuring Chinese companies to buy artificial intelligence chips that are produced in China rather Nvidia's chips as part of an effort to boost its domestic semiconductor industry and cushion the impact of U.S. restrictions, Bloomberg report Friday, citing unnamed sources.

NVIDIA Corporation (NASDAQ:) fell 3% in recent trading.

Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and deploy AI models, the sources told Bloomberg. 

But the new policy isn't an outright ban on Chinese companies buying Nvidia chips but rather guidance as Chinese regulators are keen to avoid curtailing the country's AI startups and escalating tensions with the US, the sources said.

Nvidia declined Bloomberg's request for comment. The China’s Ministry of Commerce, Ministry of Information and Technology, and Cyberspace Administration didn’t respond to Bloomberg's faxed requests for comment. 

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