U.S. Commerce Department moves to close loophole allowing AI chip exports to Chinese subsidiaries abroad
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Summary
The U.S. Department of Commerce has moved to close a loophole that may have allowed advanced AI chips from companies like Nvidia (Rubin and Blackwell processors) and AMD (MI350x) to be exported to Chinese AI firms' subsidiaries located outside China, such as in Malaysia. The guidance suggests these chips may have been reaching Chinese entities for nearly a year despite broader U.S. restrictions aimed at limiting China's access to critical semiconductor technology.
Key quotes
· 2 pulledThe U.S. Department of Commerce on Sunday moved to close a year-old potential loophole it had created that may have led companies to export the world's most advanced chips — like Nvidia's most sophisticated Rubin and Blackwell processors, as well as AMD's MI350x — to Chinese entities located outside China.
The unexpected guidance suggests that the United States' best AI chips may have been making their way to the subsidiaries of Chinese AI firms based in places like Malaysia for almost a year, despite broader U.S. efforts to starve Chinese firms of the semiconductors needed to develop critical
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