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Tom’s Hardware
Tom’s Hardware
Technology
Jowi Morales

US closes loophole that allowed Chinese-owned subsidiaries located outside China to buy AI chips — report claims that hundreds of thousands of advanced AI chips have been acquired through BIS blind spot

IT server.

The U.S. Bureau of Industry and Security, the federal agency in charge of enforcing export controls, just released updated guidance that prevents Chinese-owned subsidiaries from purchasing advanced AI chips, such as Nvidia GB200 and AMD MI350x chips. According to the South China Morning Post (SCMP), some Chinese AI firms used subsidiaries based in another country, like Malaysia, to purchase these chips legally. It’s unknown how many servers were shipped in this manner, but one source told the SCMP that it’s probably in the range of hundreds of thousands.

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