US takes step to halt Nvidia AI chip shipments to Chinese firms outside China

The US Department of Commerce has issued new guidance to close a loophole that may have allowed advanced AI chips, including Nvidia's Rubin and Blackwell processors and AMD's MI350x, to be exported to Chinese entities located outside of China. This guidance, posted on Sunday, aims to prevent these high-end semiconductors from reaching subsidiaries of Chinese AI firms in countries like Malaysia. For nearly a year, these chips may have been circumventing broader US efforts to restrict China's access to semiconductors crucial for AI development. The Commerce Department's action addresses a previously created loophole that inadvertently facilitated these shipments.