Nvidia tightens AI chip sales in Asia with stricter customer compliance checks

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Nvidia reportedly cuts approved Asia customer base amid tighter AI chip export controls
Nvidia reportedly cuts approved Asia customer base amid tighter AI chip export controls

Nvidia has reportedly reduced the number of Asian customers eligible to purchase its AI chips after introducing a stricter “white list” system aimed at preventing advanced technology from reaching China through third countries.

According to a report by a publication, Nvidia has significantly increased compliance checks across Singapore, Malaysia, and Japan over the past few months. Citing people familiar with the matter, the report said that more than 50% of the company’s previous customers, particularly neo-cloud providers, did not pass the initial review and were removed from the approved buyer list. However, these companies can reapply after making the required changes.

The reported move comes as the Trump administration continues efforts to stop advanced US AI chips from reaching Chinese entities through indirect routes.

In May, the US Commerce Department issued guidance aimed at preventing advanced AI chips from being supplied to overseas subsidiaries of Chinese companies. The guidance followed concerns that Nvidia’s Blackwell processors may have reached Chinese-linked entities operating in countries such as Malaysia, despite existing US export restrictions.

The report also stated that Nvidia has strengthened its compliance process in response to pressure from Washington. As part of the updated procedures, company representatives reportedly visit customers’ data centres, verify contracts, and interview end users before approving purchases.

According to the report, the US Department of Commerce is also involved in the process by providing oversight and policy support.

Neither Nvidia nor the US Department of Commerce immediately responded to requests for comment outside regular business hours.

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