Upholding export controls on semiconductor chips made in the U.S. may be harder than Washington, D.C. thinks.
Chinese buyers are getting their hands on computing systems with Nvidia’s Blackwell chips through third-party traders located in other regions, The Wall Street Journal reported.
Buyers in Malaysia, Taiwan, and Vietnam are buying these resources for their own use and reselling a portion to companies in China, the Journal added.
Just a week before leaving office, former President Joe Biden introduced sweeping new chip export restrictions that further limited several countries, one of which is China, from being able to import chips made for AI in the U.S. At the time, Nvidia said the restrictions would “derail” global innovation.
Last week, Microsoft reportedly urged President Donald Trump to ease these restrictions as big tech companies want to tap China’s sprawling AI market. Meanwhile, China recently urged its AI researchers to avoid visiting the U.S.
When reached, an Nvidia spokesperson provided the following comment: “AI datacenters are among the most complex systems in the world. Anonymous traders cannot acquire, deliver, install, use, and maintain Blackwell products in unauthorized countries. Customers want systems with software, services, support, and upgrades- none of which anonymous traders claiming to possess Blackwell systems can provide. We will continue to investigate every report of possible diversion and take appropriate action.”
This piece has been updated to include commentary from Nvidia.