Chinese AI Firms Move to Reserve Overseas Nvidia Computing Power Amid Tightened Regulation Fears
AI · First reported 12 Nov, 05:34 · Updated 06:01
Chinese artificial intelligence companies are seeking to rent Nvidia-powered computing capacity at overseas data centres amid concerns that a scandal involving Nvidia CEO Jensen Huang could prompt the United States to tighten restrictions on remote access to advanced chips. The developments have also spurred grey-market stockpiling within China as companies anticipate possible movement on proposed US export legislation.
- Chinese AI companies and cloud providers are attempting to rent overseas Nvidia computing capacity to circumvent potential US restrictions on remote cloud access to advanced processors.
- Fears have grown that personal misconduct admissions by Nvidia CEO Jensen Huang and reports alleging ties to a Chinese intelligence asset at Megaspeed could accelerate the Remote Access Security Act in the US Congress.
- Megaspeed stated it cooperated with the US Commerce Department, engaged a US law firm to audit its inventory of graphics processing units, and denied illegally diverting chips to China.
- The controversy has prompted traders and buyers in China's grey market to stockpile restricted Nvidia processors, anticipating stricter US crackdowns on chip smuggling.
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