US Commerce Department moves to block China’s remote access to Nvidia chips

Washington plans to stop Chinese entities from controlling Nvidia hardware located outside China, targeting a loophole that export rules have struggled to close The US Commerce Department plans to block China from remotely controlling Nvidia chips that sit outside Chinese borders. For years, export controls have worked on a simple premise: stop the chip from crossing the border. The problem is that in the age of cloud computing, the chip never has to move. Advanced AI chips work much the same way. A company can rent processing power from a data center in another country and run workloads on it from anywhere, without a single crate of hardware ever touching Chinese soil. That is the gap Washington now wants to close.

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