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Upholding export controls on semiconductor chips made in the U.S. may be more challenging than anticipated by Washington, D.C.
Chinese buyers are able to acquire computing systems with Nvidia’s Blackwell chips through third-party traders in different regions, as reported by The Wall Street Journal. Countries like Malaysia, Taiwan, and Vietnam are purchasing these resources for their own use and also reselling some to Chinese companies.
Former President Joe Biden implemented new chip export restrictions just before leaving office, limiting several countries, including China, from importing AI chips from the U.S. Nvidia expressed concerns that these restrictions could hinder global innovation.
Recently, Microsoft appealed to President Donald Trump to ease these restrictions, as major tech companies are interested in accessing China’s vast AI market. In response, China has advised its AI researchers to avoid visiting the U.S.
An Nvidia spokesperson stated that AI datacenters are intricate systems, and anonymous traders are not capable of providing the necessary software, services, support, and upgrades for Blackwell products in unauthorized countries. Nvidia is committed to investigating any potential diversions and taking appropriate actions.
This article has been updated to include comments from Nvidia.
