US reportedly plans to stop Chinese firms renting Nvidia chips through data centers abroad
A reported US rule would close the remote-access gap in chip export controls, with seven countries in scope. Nothing is published yet.
The short version
- The US reportedly wants to block remote use of Nvidia's advanced chips by Chinese firms via overseas data centers.
- Malaysia, Singapore and Thailand are among the 7 countries reported to be covered.
- Tencent, Alibaba and ByteDance have reportedly signed deals with overseas data centers to train AI models.
- The rules are still in talks between agencies. The final country list and enforcement details are unconfirmed.
- Commerce Secretary Howard Lutnick has reportedly resisted tougher action, which his colleagues questioned.
Why it matters
Current chip rules focus on shipping hardware across borders. Renting computing time in someone else's building never crosses a border, and this plan targets that gap. If you use AI products that run on rented capacity abroad, a rule change could affect availability or price. That effect is indirect, and nothing is final.
What is reportedly planned
As technews.tw reported, the US government is said to be preparing a wider set of AI chip export controls. The aim is to stop Chinese companies from reaching Nvidia's advanced chips remotely through data centers outside China.
The rules could come out as early as this month. The scope is reported to stretch to seven countries, including Malaysia, Singapore and Thailand. The full list has not been confirmed.
The loophole being closed
Existing controls restrict selling advanced chips to China. But a company can instead rent computing power from a data center in another country, and no chip ever ships to China.
The report, which traces back to The Information via Investing.com, says Tencent, Alibaba and ByteDance have signed such deals to train AI models on Nvidia's top chips. The new rules would extend the Commerce Department's Bureau of Industry and Security (BIS) controls to cover this. They would also aim to curb chip smuggling.
A fight inside Washington
Separate reports, relayed by Reuters from Axios, say President Trump again authorized action against firms suspected of routing Nvidia chips to China on Thursday, November 5. He reportedly asked Elon Musk for input first.
Lutnick has reportedly blocked such measures several times. At a White House meeting, Treasury Secretary Scott Bessent reportedly asked him why his department resisted export controls. Lutnick seemed to agree but said he needed to check with Trump.
The report adds that Nvidia CEO Jensen Huang faces a board inquiry over a relationship with a woman US intelligence officials suspect of spying for China. It says this has led some lawmakers to push for tighter limits.
What is still unknown
The rules are still being negotiated between agencies and have not been published. Which countries are covered and how they would be enforced are both unconfirmed.
The report also says Beijing's push for homegrown chips adds pressure on these overseas arrangements, alongside stricter US scrutiny.
What to watch
- Which seven countries are covered, and whether the rule is published this month.
- How the US would enforce limits on renting computing time, not just on shipping chips.
- Whether the dispute inside the administration over export controls slows the rule.
Try it
If a software vendor's AI runs on rented servers abroad, ask where those servers sit and whether the vendor could switch providers.
Sources and links
- Reportingtechnews.tw: the article we sourced
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Listen to the daily showsFirst reported by technews.tw · Read the original. Written by the SI Agent News Desk from the reporting above.Written with AI from the source above. Every number is checked against the source. Spot a mistake? Corrections.