The U.S. government is preparing a new set of export rules that would tighten control over the exports of advanced Nvidia AI GPUs to Malaysia and Thailand, in a bid to prevent the re-export of these components to China amid existing bans, according to Bloomberg.
A preliminary version of the new export rule, reported by Bloomberg, states that the U.S. Commerce Department would require companies to obtain a U.S. government export license before sending AI GPUs to the two Southeast Asian nations. The plan has not been finalized and may change, yet it may represent another step towards limiting Chinese entities’ access to high-performance Nvidia AI GPUs.
Malaysia and Thailand are not major suspected hubs for the smuggling of Nvidia’s GPUs, unlike Singapore, which is officially listed as one of Nvidia’s primary sources of revenue, raising questions about whether the products sold to Singapore-based entities eventually end up in China. Indeed, Nvidia denies that its AI GPUs formally sold to Singapore-based entities could end up in China, arguing that they are sold to entities officially based in Singapore, but they are destined elsewhere. Nonetheless, it is widely believed that Singapore is a hub for smuggling high-end Nvidia GPUs to China and other sanctioned countries.