US shuts ‘secret backdoor’ that may have allowed Chinese companies to use Nvidia's top AI chips
The US has closed a loophole allowing Chinese firms to acquire advanced AI chips through overseas branches for nearly a year. This oversight, stemming from a past decision not to enforce a security rule, permitted access to top-tier processors. New guidance now imposes strict licensing for Chinese-headquartered companies, though existing chip usage and maintenance by subsidiaries are permitted.
The US has closed a loophole allowing Chinese firms to acquire advanced AI chips through overseas branches for nearly a year. This oversight, stemming from a past decision not to enforce a security rule, permitted access to top-tier processors. New guidance now imposes strict licensing for Chinese-headquartered companies, though existing chip usage and maintenance by subsidiaries are permitted.
