US to check Chinese AI companies' overseas access to Nvidia chips

US authorities are investigating how Chinese artificial intelligence developers gain access to advanced Nvidia chips through infrastructure outside China.

Regulators' attention was drawn to new technological achievements by Chinese companies, indicating that they continue to use powerful American processors despite Washington's export restrictions.

One way to circumvent direct restrictions may be the use of data centers and cloud services in third countries. In this case, the chips do not physically enter China, but Chinese companies gain access to their computing capabilities.

The US Department of Commerce previously tightened requirements for overseas subsidiaries of Chinese companies. For them to purchase advanced AI chips, a US export license may now be required regardless of the buyer's country of registration.

The review could serve as grounds for further tightening control over data centers and cloud platforms that provide Chinese customers access to American technologies. At the same time, the adoption of new restrictions has not yet been reported.

Source: Bloomberg