How NVIDIA will stop its AI chips from reaching China
What's the story
NVIDIA has cut its list of approved AI chip customers in Asia by more than half, The Financial Times reported. The move comes as part of a new "white list" strategy and stricter compliance checks. These measures are aimed at preventing the advanced AI chips from reaching China through third countries.
Compliance checks
Renewed review process
The chipmaker has stepped up its due diligence process in Singapore, Malaysia, and Japan.
The report cites three people familiar with the matter as sources of this information.
Under a renewed review process, over half of NVIDIA's previous customers have been excluded from the list.
This especially includes neo-cloud providers who didn't pass these stringent compliance checks.
Reapplication process
Companies can reapply
Companies that didn't pass the initial review have the option to make necessary changes and reapply.
This new strategy is in line with the US Commerce Department's guidance issued in May.
The guidelines are aimed at preventing advanced AI chips from reaching overseas subsidiaries of Chinese companies.
There are concerns that NVIDIA's advanced Blackwell processors may have been sold to China-linked firms in Malaysia despite US restrictions.