The U.S. Department of Commerce is preparing a rule that would bar Chinese companies from utilizing cloud services to remotely access advanced AI processors, specifically Nvidia’s Blackwell series and newer chips. Under the proposed regulation, semiconductor exports to seven countries—including Singapore, Malaysia, Thailand, Indonesia, Brazil, South Africa, and Norway—would require stringent licenses. Buyers in those regions must disclose the identity of the end users and the intended use of the hardware to ensure the chips are not rented to Chinese firms to bypass U.S. export bans.
The move comes as Washington increases pressure on chip suppliers following reports of a scandal involving Nvidia CEO Jensen Huang, sparking fears among Chinese AI labs that their access to overseas computing capacity will vanish. In response, Chinese firms have rushed to secure rents at foreign data centers, while Alibaba shares fell 7% in Hong Kong trading. While Nvidia has opposed the closure of the remote access loophole, the rule could be finalized as early as this month.
