02:46 PM EDT, 09/27/2024 (MT Newswires) -- Chinese officials have been discouraging local companies from buying Nvidia's ( NVDA ) H20 chips and have instead urged them to purchase locally produced AI chips, Bloomberg reported Friday, citing people familiar with the matter.

The regulators have used guidance instead of an outright ban because they want to avoid escalating tensions with the US as well as handicapping China's AI startups, the people reportedly told Bloomberg.

Nvidia ( NVDA ) declined to comment to MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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