Key facts
- A major Chinese cloud provider has discussed internally whether to lock in overseas Nvidia chip capacity, three people said.
- Some Chinese companies have contacted data-center operators about reserving Nvidia capacity, the people said.
- Smaller AI labs are considering similar steps, including approaching rented-computing providers in Southeast Asia, two people said.
- The companies fear the Huang controversy could add political momentum to the Remote Access Security Act, the people said.
- The House passed the Remote Access Security Act in January 369-22; it awaits Senate action.
- Traders and intermediaries have started stockpiling restricted Nvidia chips in China's grey market, two people said.
Chinese artificial intelligence companies are trying to rent Nvidia-powered computing capacity at data centers outside China, three people familiar with the matter said in a report published November 12. They are concerned that a scandal involving Nvidia chief executive Jensen Huang could spur Washington to tighten restrictions on their remote use of advanced processors.
The moves point to concern among Chinese technology companies over the potential closing of a gap in US export controls. Washington restricts exports to China of Nvidia's most advanced AI chips, but Chinese companies can access such processors remotely by renting computing power at data centers overseas.
A major Chinese cloud provider has discussed internally whether to lock in overseas Nvidia chip capacity, while some companies have contacted data-center operators about reserving it, the people said. The people declined to be identified, or to identify the cloud provider, because of the sensitivity of the matter. Smaller AI labs are considering similar steps, including approaching major providers of rented computing power in Southeast Asia, two of the people said.
The companies fear the controversy surrounding Huang could add political momentum to the Remote Access Security Act, or RASA, a US bill that would give the Commerce Department authority to regulate remote, cloud-based access to restricted technology, the people said. The House of Representatives passed the bill in January by a 369-22 vote, and it awaits Senate action.
Huang said on Sunday that he had been unfaithful to his wife. The New York Times reported that the woman involved was Alice Huang, a former executive at Singapore-based cloud-computing company Megaspeed, and that US authorities had concluded she was a Chinese intelligence asset. Reuters said it could not independently verify that allegation, which China has denied.
Alice Huang had business dealings and investment ties with several leading Chinese technology companies, including Tencent and Alibaba, according to two people familiar with the matter. Tencent and Alibaba did not immediately respond to requests for comment. Singapore business filings show that Alibaba subsidiary Apex Enterprise Solutions provided financing to Speedmatrix, a Malaysian company linked to Megaspeed, according to records reviewed by Reuters.
Megaspeed has faced scrutiny over suspicions that it helped Chinese customers gain access to advanced Nvidia chips subject to US export controls. The company has denied illegally diverting chips to China. Nvidia, Megaspeed and the US Commerce Department did not immediately respond to requests for comment.
The prospect of tougher enforcement has also fueled demand for restricted Nvidia AI chips in China's grey market, prompting traders and intermediaries to start stockpiling these processors, two of the people said. They said buyers fear the controversy could prompt a broader US crackdown on smuggling of advanced chips and AI servers into China. A Chinese university with deep ties to the People's Liberation Army bought Nvidia's H200 AI chips last month despite being on a US export blacklist, procurement records show. US prosecutors in March charged Super Micro Computer co-founder Yih-Shyan "Wally" Liaw and two others with conspiring to divert servers containing Nvidia chips to China through a Southeast Asia-based company; prosecutors said the company bought about $2.5 billion of servers from Super Micro between 2024 and 2025, and that a substantial portion was diverted to China. The defendants have not been convicted.