Nvidia Implements Whitelist System, Cuts Eligible Asian Customers by Over Half to Block AI Chips Reaching China

NVDA-3.53%

According to Financial Times, Nvidia has tightened compliance reviews for Asian customers in recent months and established a new whitelist mechanism, reducing the number of authorized buyers by over half in key markets including Singapore, Malaysia, and Japan. The chip giant, valued at $5.1 trillion, aims to prevent its AI processors from reaching China through third-country transshipment.

Nvidia employees now conduct in-person facility visits to customers' data centers to verify contracts and interview end-users, validating business authenticity. The U.S. Department of Commerce participates in oversight and provides policy support. The stricter review process represents a major upgrade to Nvidia's longstanding compliance procedures, expanding both compliance requirements and on-site verification scope.

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