U.S. finalizes rule to block Chinese access to AI chips via foreign data centers

The U.S. Commerce Department is finalizing a rule to prevent Chinese AI companies from remotely accessing advanced AI chips via data centers in other countries, according to The Information. The rule could be announced this month. The expanded controls will apply to seven additional countries, including Malaysia, Singapore, and Thailand, extending the Bureau of Industry and Security's current semiconductor restrictions. The measure aims to block remote access and chip smuggling to China, amid scrutiny of Nvidia's ties following CEO Jensen Huang's admitted affair with a suspected Chinese spy. Chinese firms like Tencent, Alibaba, and ByteDance have offshore data center deals for Nvidia's top chips, but these face growing scrutiny as Beijing pushes domestic alternatives. The Commerce Department is consulting other agencies before finalizing, with President Trump urging stricter export controls while Commerce Secretary Howard Lutnick opposed the measure.