Why China Doesn’t Want to Buy More Nvidia Chips

Three years after the U.S.’s sweeping export restrictions that cut off Chinese access to AI chips, China has managed to turn the situation around. For the next five years, it will have more AI chips than its companies need.

The excessive supply is a combination of local chipmakers catching up and tech companies stockpiling Nvidia chips via both the open and black market, according to estimates from investment bank Jefferies.