The US let Nvidia sell chips to an empty office in China
Concerns are being raised that neither the Commerce Department nor Nvidia are doing their due diligence when it comes to vetting Chinese firms cleared to handle the company's H200 AI chips. According to The New York Times, New Matrix is on the list of approved firms, yet its offices are empty, "a hollow gray shell […]
The US government has recently approved sales of Nvidia's AI chips to Chinese firms with ties to blacklisted entities, raising concerns about the lack of due diligence in vetting these companies. One such firm, New Matrix, has been listed as approved for handling Nvidia's H200 AI chips, but appears to be a "hollow gray shell with wires dangling from the ceiling where lights should be."
The New York Times could find little evidence of New Matrix's existence, as there is scant information online about the company and it does not appear on company directories or with the industrial park's property management agency. The owners of New Matrix have ties to a Chinese private equity firm blacklisted by the US government since 2024.
This is not an isolated case, but a pattern of companies connected to entities with national-security-related trade restrictions being approved to purchase Nvidia chips.
Written by urgent.news from The Verge's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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