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US Commerce Department Investigates Chinese AI Firms Renting Restricted Nvidia Chips via Overseas Cloud

Nvidia has verbally ordered its global data center partners to ensure at least 51 percent of their AI computing services are sold to non-Chinese companies. The mandate aims to close a loophole allowing Chinese tech firms to access restricted advanced chips through overseas cloud providers.

Factlen Newsroom· Updated

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Nvidia is requiring its global data center partners to limit the computing capacity they rent to Chinese technology firms.From: Nvidia Instructs Cloud Partners to Cap Chinese Client Access at 49 Percent

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Key numbers

20,000
Nvidia H200 chips allegedly accessed via Alibaba
2.8 trillion
Parameters in Moonshot's Kimi K3 model

From: US Commerce Department Investigates Chinese AI Firms Renting Restricted Nvidia Chips via Overseas Cloud

Charts, maps and images

The new verbal directive caps Chinese tenancy at 49 percent per cloud provider.From: Nvidia Instructs Cloud Partners to Cap Chinese Client Access at 49 Percent ·
Export restrictions have driven the price of advanced Nvidia hardware on the Chinese black market to nearly five times the global rate.From: Nvidia Instructs Cloud Partners to Cap Chinese Client Access at 49 Percent ·
Recent breakthroughs by Chinese AI startups have highlighted the massive scale of compute available through offshore cloud rentals.From: US Commerce Department Investigates Chinese AI Firms Renting Restricted Nvidia Chips via Overseas Cloud ·
Data centers in third-party nations have become critical access points for firms restricted from importing physical hardware.From: US Commerce Department Investigates Chinese AI Firms Renting Restricted Nvidia Chips via Overseas Cloud ·
Illustration: The mandate disproportionately impacts specialized "neocloud" providers operating in Southeast Asia.From: Nvidia Instructs Cloud Partners to Cap Chinese Client Access at 49 Percent ·

Timeline

November 2026

  1. Nvidia Instructs Cloud Partners to Cap Chinese Client Access at 49 Percent

August 2026

  1. US Commerce Department Investigates Chinese AI Firms Renting Restricted Nvidia Chips via Overseas Cloud