Chinese Companies Seek Overseas Computing Capacity With Nvidia Chips Amid Fears of US Restrictions
Key Facts
Chinese artificial intelligence companies are trying to rent computing capacity powered by Nvidia chips at data centers outside China, anticipating a possible tightening of Washington’s restrictions on remote use, according to three people familiar with the matter cited by Reuters. The efforts focus on securing the same computing capacity through services hosted abroad, as US restrictions curb exports to China of the company’s most advanced chips. Reuters reported that a major Chinese cloud provider discussed internally whether it should reserve capacity for Nvidia chips overseas. Some companies contacted data center operators to request reservations for that capacity. The steps reflect a shift in concern from the availability of chips inside China to the possibility that access to their computing power across borders could be restricted.
Smaller artificial intelligence labs are considering similar steps, including contacting rented computing capacity providers in Southeast Asia, according to Reuters. This route allows them to use processors installed in data centers outside China without importing them directly into the country. But US reports have raised the possibility of expanding oversight to cover remote cloud access, making overseas rentals a source of concern for Chinese companies. Nvidia’s advanced processors are used to train and run large artificial intelligence models. Those models underpin chatbots and other generative AI products, Reuters reported.
The concern is linked to a US bill called the Remote Access Security Act, which gives the Commerce Department authority to regulate remote cloud access to restricted technology. The House of Representatives passed the bill in January by a vote of 369-22, according to Reuters, while Senate action was pending when the report was published. The official House record shows that the vote on bill H.R. 2683 took place on 12 January 2026. The legislative effort brings computing services provided by overseas data centers into the debate over restrictions, alongside exports of the chips themselves. Chinese companies are watching to see whether the Senate will act on the bill, as expanded authority could change the terms for accessing rented computing capacity.
The efforts come under an export regime that allows some license applications for shipments to China to be reviewed case by case. In January 2026, the US Commerce Department said export applications for Nvidia’s H200 chips, AMD’s MI325X chips and similar chips would be subject to individual review, provided security requirements were met. Licensing conditions include proof of export-control compliance procedures, including customer screening. The department also requires independent testing in the United States to verify the product’s performance and security. The combination of export reviews and debate over regulating cloud access means overseas rentals are being pursued in an environment where chips, customers and how they are used are subject to official scrutiny.
Nvidia disclosures indicate that US licenses for shipments have not translated into broad availability of its products in the Chinese market. The company said the US government had granted licenses to ship small quantities of H200 products to specific customers in China, but Chinese government restrictions limited sales and prevented it from selling the full licensed quantities. It added that those shipments represented less than 1% of data center revenue in its most recently reported quarter. The company also said in results published in August that it was not assuming data center computing revenue from China in its forecast for the third quarter of fiscal 2027. The disclosures show the limits on licensed sales as Chinese companies seek to secure computing capacity through overseas data centers.
The issue is part of a broader debate in Washington over oversight of advanced chip exports to China. The Associated Press reported that restrictions on advanced semiconductor exports began under the Biden administration and that President Donald Trump authorized exports of H200 chips to China earlier in 2026. The agency quoted Chinese Foreign Ministry spokeswoman Mao Ning as rejecting the espionage narrative and urging Washington to stop inventing “Chinese espionage narratives” as a pretext for imposing technology restrictions. Lian Jye Su, an analyst at Omdia, said the issue brings together national security concerns, export controls and foreign policy. Nvidia previously held about 95% of the Chinese market, before its sales to the country fell because of export restrictions, according to the Associated Press.
In a parallel legislative track, the Senate version of a defense policy bill includes a proposed congressional authority to review licenses for sales of advanced artificial intelligence chips to China, as well as track them to prevent diversion to unauthorized locations, according to the Associated Press. The proposal puts license reviews and monitoring the chips’ destinations among the oversight tools under discussion by lawmakers. The chairman of the House Foreign Affairs Committee also requested a hearing on 2 December on chip smuggling and alleged interference in export-control policies and investigations. In a separate letter, Representatives Ron Wyden and Richard Neal asked that records be preserved of Commerce Department investigations, Nvidia license applications and its communications with the company, its chief executive Jensen Huang and their representatives. Members of Congress have called for an investigation into decisions to export Nvidia’s advanced chips to China and for officials to be subpoenaed to testify, the Associated Press reported.