China starts list of government-approved AI hardware suppliers: Cambricon and Huawei are in, Nvidia is not

China has initiated a list of government-approved AI hardware suppliers to promote the use of locally developed AI processors in public sector organizations. The list currently includes Cambricon and Huawei but excludes foreign companies like Nvidia. This move reflects China's push for self-sufficiency in AI technology and semiconductor production. While Chinese companies like Alibaba and Tencent still rely on Nvidia's hardware for competitiveness, the government is incentivizing the use of domestic AI processors through energy subsidies. The challenge lies in whether China can meet the demand for AI processors domestically, especially with limitations on chip production capacity due to sanctions.