Chinese AI companies are seeking to secure overseas NVIDIA computing power in advance, fearing that the US may tighten restrictions on remote access.

Beating AI News Flash: According to Reuters, three people familiar with the matter said that some Chinese AI companies are seeking to lock in Nvidia computing power in overseas data centers in advance, fearing that the controversy involving Nvidia CEO Jensen Huang could prompt the United States to tighten restrictions on remote access to advanced chips. A major Chinese cloud service provider has internally discussed whether to lock in overseas computing power in advance, and another company has contacted data center operators to inquire about reservations. Some smaller AI labs are also considering approaching major computing power leasing providers in Southeast Asia. The people familiar with the matter did not disclose the names of these companies.

The United States currently restricts exports of Nvidia's most advanced AI chips to China, but Chinese companies can still rent computing power from overseas data centers to train and run large models remotely without directly importing chips. The people familiar with the matter said the companies are concerned that the Jensen Huang controversy may accelerate progress on the Remote Access Security Act (RASA). The bill would authorize the U.S. Department of Commerce to regulate remote access to restricted technologies through cloud services. It passed the U.S. House of Representatives in January this year by a vote of 369 to 22 and still awaits Senate review.

Jensen Huang admitted on Sunday that he had an extramarital relationship. The New York Times said the woman involved, Alice Huang, previously served as an executive at Singapore cloud computing company Megaspeed. Singapore corporate registration filings show that Alibaba's Apex Enterprise Solutions previously provided financing to Speedmatrix, a Malaysian company associated with Megaspeed. Megaspeed had previously been scrutinized on suspicion of helping Chinese clients obtain Nvidia chips subject to U.S. export controls, but the company denied ever illegally transshipping chips to China.

In addition to booking overseas computing power, two people familiar with the matter said traders and intermediaries in China's gray market have also begun hoarding restricted Nvidia AI chips, fearing that the United States will intensify its crackdown on smuggling of advanced chips and AI servers.