Chinese AI Firms Rush to Reserve NVIDIA Cloud Capacity After Spy Scandal

Chinese artificial intelligence companies are moving to reserve computing power on NVIDIA chips at overseas data centers, fearing the controversy surrounding chief executive Jensen Huang could accelerate U.S. restrictions on remote access.

Some companies have approached data center operators about reserving capacity, and a major Chinese cloud provider has discussed doing so internally, according to Reuters.

Two people familiar with the matter told Reuters that smaller AI labs were also weighing whether to approach computing providers in Southeast Asia.

U.S. export controls restrict shipments of NVIDIA’s most advanced AI chips to China.

Renting computing power overseas gives Chinese developers access to those processors to train and run AI models without importing the hardware.

The companies fear the Huang controversy could build support for the Remote Access Security Act, which would give the U.S. Commerce Department authority to regulate cloud-based access to restricted technology.

The House passed the bill 369–22 in January. It awaits Senate action.

Scrutiny of Megaspeed

Jensen Huang said on Sunday that he had been unfaithful to his wife.

The New York Times identified the woman as Alice Huang, a former executive at Singapore-based cloud provider Megaspeed, and reported that U.S. authorities had concluded she was a Chinese intelligence asset, according to Reuters.

Megaspeed has faced U.S. scrutiny over suspicions it helped Chinese customers obtain restricted NVIDIA chips.

The company denied illegally diverting chips to China and said it had cooperated with Commerce Department inspections and hired a U.S. law firm to inventory its processors and review its export-control compliance.

NVIDIA and the Commerce Department did not respond to Reuters’ requests for comment.

Chip Traders Stockpile Processors

In Hong Kong on Thursday, Alibaba shares fell as much as 7.1%, while AI model developers Z.AI and MiniMax each dropped at least 7% amid concern that Washington could tighten access to advanced chips.

Two people familiar with the matter told Reuters that Chinese gray-market traders and intermediaries had begun stockpiling restricted NVIDIA processors.

Buyers fear the controversy could lead to tougher U.S. enforcement against smuggling of advanced chips and AI servers into China, the people said.

Procurement records cited by Reuters show that a Chinese university with deep ties to the People’s Liberation Army bought NVIDIA H200 chips last month despite being on a U.S. export blacklist.