Chinese AI firms rush to secure Nvidia chip capacity abroad as spy scandal raises US curbs fears

Chinese AI companies are rushing to secure rented Nvidia computing capacity outside China, fearing the scandal involving Nvidia CEO Jensen Huang could prompt Washington to close loopholes in US export controls on advanced processors. A major Chinese cloud provider has discussed locking in overseas Nvidia chip capacity, while some firms contacted data-centre operators about reservations, and smaller AI labs are approaching Southeast Asian providers. The companies worry the controversy could boost the Remote Access Security Act, a US bill passed by the House in January that would regulate remote cloud access to restricted technology. The scandal stems from a New York Times report that US authorities concluded a woman involved with Huang was a Chinese intelligence asset, which China denied. The controversy has also spurred grey-market stockpiling of restricted Nvidia chips in China, while shares of Chinese AI firms fell sharply in Hong Kong on Thursday.