Key facts
- Nvidia has more than halved its authorized Asian AI chip customers.
- The company implemented a 'white list' system with enhanced compliance checks.
- U.S. guidance clarified that export licenses are required for advanced chips if the ultimate parent company is Chinese.
- Chinese customs authorities have launched a crackdown on Nvidia chip shipments at major ports.
- Chinese AI startup DeepSeek is reportedly considering raising new funds at a $71 billion valuation.
Nvidia has significantly tightened its compliance measures, more than halving the number of authorized Asian customers for its artificial intelligence chips. This action is part of an effort to prevent its advanced products from reaching China, in line with U.S. export control regulations. The chipmaker has reportedly intensified due diligence over the past few months in Singapore, Malaysia, and Japan, creating a 'white list' of companies that have passed stricter checks. This move follows U.S. Commerce Department guidance clarifying that export licenses are required for advanced computing chips destined for any entity whose ultimate parent company is headquartered in China or Macau, regardless of its location. This clarification aimed to close a loophole that had allowed Chinese firms to acquire banned Nvidia GPUs through subsidiaries in Southeast Asia. Industry estimates suggest hundreds of thousands of banned Nvidia chips may have already reached Chinese-owned subsidiaries via this channel. Concurrently, Chinese customs authorities, coordinated by the Cyberspace Administration of China, have launched a sweeping crackdown on Nvidia chip shipments at major ports, targeting chips like the H20 and RTX 6000D, as well as 'all advanced semiconductor products.' Meanwhile, Chinese AI startup DeepSeek is reportedly weighing raising new funds one month after closing its first round, with preliminary talks underway for another round that would value the company at about $71 billion.