Nvidia's new RTX6000D chip, designed for the Chinese market, has experienced low demand from major tech firms due to its high cost and underwhelming performance compared to alternatives on the grey market. The chip's launch comes amid increasing scrutiny from Chinese authorities and ongoing U.S.-China trade tensions.

Nvidia has halted production of its H20 graphics processing units for the Chinese market amid Beijing's crackdown on American technology due to national security concerns. This follows a government directive for local companies to stop purchasing the chips, raising doubts about Nvidia's ability to sell in China and impacting its significant annual revenue from the region. CEO Jensen Huang expressed hope for resolution but acknowledged the challenges posed by U.S.-China trade tensions.

China has implemented new regulations prohibiting its tech companies from purchasing AI chips from Nvidia, a move aimed at controlling access to advanced technology and bolstering domestic chip production. This policy reflects ongoing tensions between China and the U.S. regarding technology and trade.