Nvidia has instructed certain cloud providers to reduce their business volume with Chinese clients. This guidance aims to encourage a more diverse customer mix among providers, including those backed by Nvidia itself. The directive is not mandatory and applies only to future contracts rather than existing agreements. Cloud customers are also being asked to disclose the identity of end users accessing their chips. The instruction was communicated verbally through sales representatives and regional teams.
The move targets a specific gap in current US export controls. While rules restrict physical chip shipments, they generally do not cover remote access through cloud services. This loophole allows Chinese AI developers to tap advanced Nvidia chips by renting compute capacity at data centres abroad without ever importing the hardware. US authorities had been investigating Chinese AI companies accessing such chips through foreign data centres after allegations surfaced involving Moonshot AI, the developer behind the Kimi chatbot.
* Applies to future contracts only
* Communication was verbal via sales teams
* Targets remote access loopholes
