Regulations
The unexpected guidance suggests the United States' best AI chips may have been making their way to the subsidiaries of Chinese AI firms based in places like Malaysia.
A sign is pictured in front of Nvidia headquarters on Aug. 27, 2025 in Santa Clara, California, US. (Getty Images via AFP /Justin Sullivan)
The US Department of Commerce on Sunday moved to close a year-old potential loophole it had created that may have led companies to export the world's most advanced chips, like Nvidia's most sophisticated Rubin and Blackwell processors, as well as AMD's MI350x, to Chinese entities located outside China.The unexpected guidance suggests the United States' best AI chips may have been making their way to the subsidiaries of Chinese AI firms based in places like Malaysia for almost a year despite broader US efforts to starve Chinese firms of semiconductors needed to develop critical AI capabilities.
The new guidance was posted on the Commerce Department's website on Sunday.
