Chinese artificial intelligence companies are moving to secure access to Nvidia-powered computing capacity outside China as concerns grow that a controversy involving the chipmaker’s CEO, Jensen Huang, could encourage Washington to tighten restrictions on the remote use of advanced processors.
The companies are concerned that US authorities may close a significant gap in export controls: although Washington restricts direct sales of Nvidia’s most advanced AI chips to China, Chinese developers can still access some of this computing power by renting capacity at overseas data centres.
The growing rush to reserve overseas infrastructure highlights how uncertainty surrounding US technology policy is already influencing commercial decisions in China’s AI sector.
Chinese Firms Seek to Lock In Overseas Computing Capacity
Several Chinese technology companies are considering ways to secure access to Nvidia-powered data centres before potential regulatory changes make remote access more difficult.
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A major Chinese cloud provider has discussed internally whether to reserve overseas Nvidia chip capacity, while other companies have approached data-centre operators about securing access in advance, according to people familiar with the discussions.
Smaller AI developers are also considering similar arrangements, including contacting major providers of rented computing power in Southeast Asia.
The companies are particularly concerned about the possibility that Washington could expand its export restrictions beyond physical shipments of advanced processors to cover access through overseas cloud infrastructure.
For Chinese AI developers, this distinction is critical. Renting computing power abroad offers a way to use advanced processors without importing the hardware directly into China. If that route becomes subject to tighter controls, developers could face additional difficulties obtaining the processing capacity needed to train and operate sophisticated AI models.
Remote Access Security Act Raises Regulatory Concerns
The controversy has renewed attention on the proposed Remote Access Security Act, known as RASA, which would give the US Commerce Department authority to regulate remote, cloud-based access to restricted technologies.
The US House of Representatives passed the legislation in January by 369 votes to 22. It is now awaiting action in the Senate.
Chinese companies fear that the allegations surrounding Huang could generate additional political support for the legislation and strengthen calls for stricter enforcement of existing export controls.
The issue goes beyond Nvidia itself. Advanced processors are essential for training and running large AI models, including the systems behind chatbots and other generative AI products. Limiting overseas cloud access could therefore affect the ability of Chinese companies to develop increasingly sophisticated AI applications.
Washington’s broader objective is to preserve its technological advantage in advanced semiconductors and limit China’s access to computing resources with potential military and strategic applications.
Huang Controversy Adds Political Pressure
The regulatory concerns have intensified following reports involving Huang and Alice Huang, a former executive at Singapore-based cloud-computing company Megaspeed.
Huang said on Sunday that he had been unfaithful to his wife. The New York Times subsequently reported that Alice Huang was the woman involved and that US authorities had concluded she was a Chinese intelligence asset.
Reuters could not independently verify the allegation, which China has denied.
According to people familiar with the matter, Alice Huang had business dealings and investment ties with several major Chinese technology companies, including Tencent and Alibaba. Neither company immediately responded to requests for comment.
Singapore business filings also show that Alibaba subsidiary Apex Enterprise Solutions provided financing to Speedmatrix, a Malaysian company linked to Megaspeed.
The connections have attracted attention because Megaspeed has faced scrutiny over suspicions that it helped Chinese customers obtain advanced Nvidia processors subject to US export controls. The company has denied illegally diverting chips to China.
Nvidia, Megaspeed and the US Commerce Department did not immediately respond to requests for comment.
The allegations have not established wrongdoing by the companies mentioned. However, the controversy has added another politically sensitive dimension to the debate over how advanced American technology reaches Chinese customers.
Grey-Market Demand for Nvidia Chips Also Increases
Concerns about tighter enforcement are extending beyond overseas data centres. Chinese traders and intermediaries have reportedly begun stockpiling restricted Nvidia AI processors in anticipation of a possible crackdown on the grey market.
Buyers fear that Washington could intensify efforts to prevent advanced chips and AI servers from entering China through unofficial channels.
Recent cases have highlighted the difficulties of enforcing restrictions across international supply chains. Procurement records showed that a Chinese university with close ties to the People’s Liberation Army purchased Nvidia’s powerful H200 AI chips last month despite being on a US export blacklist.
The case illustrates how restricted technology can still reach Chinese institutions through procurement channels that are difficult for authorities to monitor.
In another development, US prosecutors charged Super Micro Computer co-founder Yih-Shyan “Wally” Liaw and two others in March with conspiring to divert servers containing Nvidia processors to China through a company based in Southeast Asia.
Prosecutors alleged that the company purchased approximately $2.5 billion worth of servers from Super Micro between 2024 and 2025, with a substantial portion subsequently diverted to China. The defendants have not been convicted.
Together, these cases demonstrate the enforcement challenges facing Washington as it attempts to control not only direct chip exports but also the international networks through which advanced computing equipment can be accessed or redirected.
What Happens Next?
The immediate focus will be on whether the US Senate advances the Remote Access Security Act and whether Washington introduces additional measures governing overseas cloud access to restricted processors.
For Chinese AI companies, the uncertainty is already creating pressure to secure computing capacity before new restrictions potentially take effect. Overseas data centres, particularly those in Southeast Asia, could become increasingly important to this strategy.
For the United States, the challenge is to prevent restricted technology from reaching Chinese users without creating loopholes through cloud services, third-party operators and international supply chains.
The dispute also highlights a wider shift in the US-China technology competition. Export controls are no longer limited to determining where advanced chips can be physically sold. They increasingly involve deciding who can access computing power, where that access takes place and how it is monitored.
If Washington moves to regulate remote access more aggressively, the consequences could extend well beyond Nvidia, affecting global data-centre operators, cloud providers and the international AI industry.
With information from Reuters.
