Nvidia’s Huang says there’s no evidence of AI chip diversion

Source Cryptopolitan

President Donald Trump is weighing new export restrictions on AI chips from companies like Nvidia to Malaysia and Thailand to curb suspected semiconductor smuggling into China.

While the White House has already banned sales of Nvidia’s H20 chips to China over national security concerns, officials believe further action may be needed. Sources say limiting exports to these Southeast Asian countries could cut off critical alternative pathways through which China acquires US-made semiconductors.

The Commerce Department has reportedly drafted a version of the proposed rule, though it remains under review and has not yet been finalized.

Commerce Department pledges to develop a better strategy to replace Biden’s AI diffusion rule

Sources revealed that the Trump administration could couple the Malaysia and Thailand controls with a formal withdrawal of the global limits defined by the AI diffusion rule, which Biden imposed. During Biden’s term, the government set multiple semiconductor restrictions to fight off smuggling and boost the American chip market. The curbs, however, have since sparked criticism from the country’s trading partners and tech firms like Nvidia. 

Trump had promised to scrap some of those restrictions. In May, the Commerce Department said it would replace the diffusion approach with a “bold, inclusive strategy.” Still, some doubt the department’s draft could offer a complete or adequate replacement for the existing framework. 

Some have argued that, for starters, their proposal fails to detail security requirements for the international use of US chips, a particularly highly sensitive issue for the Middle East. 

However, it’s still uncertain whether Trump officials will eventually expand AI chip export controls beyond Malaysia and Thailand to include a broader range of countries. The agency has only stated that it will permit the nation’s allies to purchase AI chips only if a vetted American data center operator operates them and an approved American operator manages any associated cloud infrastructure.

Nvidia’s Huang says there’s no evidence of AI chip diversion

In May, Nvidia CEO Jensen Huang stated that no evidence suggests AI chips are being redirected to China. He emphasized that the company’s hardware is too large to be easily smuggled and noted that clients are well aware of existing regulations, making them cautious to remain compliant.

He commented, “There’s no evidence of any AI chip diversion. These are massive systems. The Grace Blackwell system is nearly two tons, and so you’re not going to be putting that in your pocket or your backpack anytime soon.”

Meanwhile, speaking to Bloomberg on the possible export curbs, the Thai government said it’s still waiting to receive more information, while Malaysia’s Ministry of Investment, Trade and Industry echoed the importance of transparent and stable policies for the tech industry.

So far, tech companies, including Oracle Corp., have doubled down on their data center projects in Malaysia, with chip shipments rising. 

Washington had earlier warned the Malaysian government about potential chip diversion, prompting assurances that the matter would be closely scrutinized. However, the US government has not dropped those concerns.

In June, Malaysia’s trade ministry confirmed that a Chinese firm in the country was utilizing servers infused with Nvidia chips for LLM training. It said it collaborated with relevant agencies to see whether the company violated local laws.

The Wall Street Journal also claimed that Chinese engineers arrived in Malaysia in early March carrying suitcases filled with hard drives. According to the report, their objective was to use Nvidia-based servers in Malaysian data centers to develop AI systems.

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage

Disclaimer: For information purposes only. Past performance is not indicative of future results.
placeholder
The dollar weakened, equities dipped, and gold hit record highsThe dollar weakened, equities fell, and gold set new records on Wednesday as investors waited for a Fed rate cut later in the day.
Author  Cryptopolitan
Sep 17, 2025
The dollar weakened, equities fell, and gold set new records on Wednesday as investors waited for a Fed rate cut later in the day.
placeholder
ECB Policy Outlook for 2026: What It Could Mean for the Euro’s Next MoveWith the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
Author  Mitrade
Dec 26, 2025
With the ECB likely holding rates steady at 2.15% and the Fed potentially extending cuts into 2026, EUR/USD may test 1.20 if Eurozone growth proves resilient, but weaker growth and an ECB pivot could pull the pair back toward 1.13 and potentially 1.10.
placeholder
My Top 5 Stock Market Predictions for 2026Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
Author  Mitrade
Jan 06, Tue
Five 2026 market predictions written in a native, news-style voice: AI’s winners and losers, broader sector leadership, dividend demand, valuation cooling as the Shiller CAPE sits at 39 (Dec. 31, 2025), and quantum-computing bursts—while keeping all original facts and numbers unchanged.
placeholder
Silver Price Forecast: XAG/USD consolidates above $79.00; bearish bias intact ahead of FedSilver (XAG/USD) lacks a firm intraday direction and oscillates in a narrow range during the Asian session on Wednesday as traders opt to wait on the sidelines ahead of the crucial FOMC rate decision.
Author  FXStreet
Mar 18, Wed
Silver (XAG/USD) lacks a firm intraday direction and oscillates in a narrow range during the Asian session on Wednesday as traders opt to wait on the sidelines ahead of the crucial FOMC rate decision.
placeholder
Gold tumbles below $4,650 as inflation fears and liquidity squeeze weighGold price (XAU/USD) remains under selling pressure near $4,640 during the early Asian session on Friday. The precious metal extends the decline as soaring crude oil and energy prices, driven by the escalating US-Israeli war with Iran, reignite inflation fears.
Author  FXStreet
12 hours ago
Gold price (XAU/USD) remains under selling pressure near $4,640 during the early Asian session on Friday. The precious metal extends the decline as soaring crude oil and energy prices, driven by the escalating US-Israeli war with Iran, reignite inflation fears.
goTop
quote