US approved NVIDIA chips for Chinese firm with empty office
What's the story
The US Department of Commerce's approval for NVIDIA to sell H200 AI chips to a Chinese company, New Matrix, has raised eyebrows. The approval process is now under scrutiny as concerns mount over the lack of thorough vetting by both the department and NVIDIA itself. The New York Times reported that New Matrix's office is empty, with only scant information online about New Matrix.
Company scrutiny
New Matrix's office has no company directory listed
New Matrix, which was established 17 months ago, doesn't have a company directory listed at the address it claims to be located.
The building's property management agency also confirmed that they have no record of this company.
Further raising eyebrows are the owners' connections with a Chinese private equity firm that has been on the US government's blacklist since 2024.
Approval concerns
Worrying trend of companies linked to national security risks
The New York Times's investigation suggests that this isn't an isolated incident.
It points to a worrying trend of companies linked to those with national-security-related trade restrictions being allowed to buy NVIDIA chips.
This has raised questions about the thoroughness of the vetting process by both the US government and NVIDIA, especially given the potential national security implications.
Sales history
Backstory on NVIDIA's China sales
Under the Biden administration, NVIDIA was restricted from selling chips to China.
However, the Trump administration eased these restrictions after NVIDIA agreed to share 15% of all sales with the government.
The company's CEO Jensen Huang also led an aggressive lobbying campaign and was reportedly targeted by China's Ministry of State Security in a spying operation.