Chinese AI Companies Seek to Secure Overseas Nvidia Computing Power Amid Concerns Over US Access Restrictions

Beating AI News reports that three insiders have revealed that some Chinese AI companies are seeking to secure Nvidia computing power from overseas data centers in advance, fearing that the controversy involving Nvidia CEO Jensen Huang may prompt the US to tighten remote access restrictions on advanced chips. A large Chinese cloud service provider is internally discussing whether to secure overseas computing power ahead of time, while other companies have contacted data center operators to inquire about reservations. Some smaller AI labs are also considering reaching out to major computing power leasing companies in Southeast Asia. The names of these companies have not been disclosed by the insiders.

Currently, the US restricts the export of Nvidia's most advanced AI chips to China, but Chinese companies can still rent computing power from overseas data centers to remotely train and run large models without directly importing chips. Insiders have indicated that these companies are concerned that the Huang controversy may accelerate the advancement of the Remote Access Security Act (RASA). This bill aims to authorize the US Department of Commerce to regulate remote access to restricted technologies via cloud services and was passed in the House of Representatives in January this year with 369 votes in favor and 22 against, pending Senate review.

Jensen Huang admitted on Sunday to having had an extramarital affair. The woman involved, Alice Huang, previously held an executive position at Singapore's cloud computing company Megaspeed. Singapore corporate registration documents show that Alibaba's Apex Enterprise Solutions provided financing to Speedmatrix, a Malaysian company associated with Megaspeed. Megaspeed has previously been scrutinized for allegedly helping Chinese clients obtain Nvidia chips subject to US export controls, but the company denies illegally shipping chips to China.

In addition to reserving overseas computing power, two insiders stated that traders and intermediaries in China's gray market have also begun hoarding restricted Nvidia AI chips, fearing that the US will intensify its crackdown on the smuggling of advanced chips and AI servers.

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