Trump's Nvidia chip deal with China raises security concerns over approved buyers - report
A New York Times investigation found that Chinese firms cleared to handle Nvidia AI chips have ties to blacklisted entities and military contractors.
The Trump administration permitted Chinese entities linked to US-blacklisted groups to acquire advanced Nvidia artificial intelligence chips, sparking doubts about Washington's national security screening process, according to a New York Times investigation. New Matrix, a 17-month-old Chinese firm with an empty industrial office in Beijing, was one of the approved companies.
Its owners had ties to a Chinese private equity fund blacklisted by the US for assisting Beijing in acquiring sensitive semiconductor companies. Other authorized buyers included Baidu, BYD, and Tesla Shanghai, among others. The Commerce Department has approved around two dozen Chinese firms to purchase or handle Nvidia's H200 processors, but questions linger over the effectiveness of the screening process.
Analysts believe some buyers might be fronts for entities restricted by US national security rules. While Nvidia defended its sales, arguing China has little reason to rely on American technology, the company acknowledged Chinese regulators had restricted H200 imports while promoting the use of homegrown alternatives.
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