Chinese AI firms rush to secure Nvidia chip capacity as spy scandal stirs fear of US curbs

Chinese AI firms are rapidly securing access to Nvidia chip capacity abroad amid fears of US restrictions following a scandal involving the company's CEO, Jensen Huang. According to sources familiar with the matter, the companies are wary that the incident could prompt the US to tighten controls on remote use of advanced processors.

A major Chinese cloud provider has reportedly considered locking in overseas Nvidia chip capacity, with smaller AI labs also exploring similar options. The US bill, Remote Access Security Act (Rasa), which would enable the Commerce Department to regulate remote, cloud-based access to restricted technology, is seen as gaining political momentum due to the scandal.

Huang, a key figure in Nvidia, was alleged to have been unfaithful to his wife, with the woman involved reportedly being a Chinese intelligence asset. The controversy has prompted Chinese technology companies to consider steps to protect their access to restricted Nvidia AI chips, with some approaching data centre operators in Southeast Asia for reserved computing power.