Nvidia tightens Asia AI chip sales under U.S. pressure

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Nvidia cuts Asia buyers

Highlights

Nvidia has more than halved its approved Asian buyer list.
Singapore, Malaysia, and Japan face tougher compliance checks.
Many neo-cloud providers failed the first review.
The move targets third-country routes to Chinese entities.

The company has more than halved the number of Asian buyers eligible to purchase its AI processors after creating a “white list” of customers that passed stricter compliance checks, Reuters reported, citing the Financial Times.

Tougher checks for Asian buyers

The report said Nvidia has stepped up due diligence in Singapore, Malaysia, and Japan over the past few months. More than half of its previous customers, especially neo-cloud providers, failed the initial review and were removed from the approved partner list.

The companies are not necessarily blocked permanently. They can reapply after changing their procedures or documentation. Still, the move marks a significant tightening of rules for a region that is becoming increasingly important to demand for AI infrastructure.

The new review process goes beyond paperwork. Nvidia staff now visit customer data centers, verify contracts, and interview end users as part of efforts to confirm where chips will be deployed and who will ultimately use them.

Washington closes the third-country route

The shift comes as the Trump administration tries to stop advanced U.S. chips from reaching Chinese entities through third countries. In May, the U.S. Commerce Department issued guidance aimed at preventing overseas subsidiaries of Chinese companies from gaining access to advanced AI chips.

The concern is that Nvidia’s high-end processors, including Blackwell chips, could be exported to China-linked entities through markets such as Malaysia despite U.S. restrictions. Media reports said the Commerce Department is also involved in the process, providing oversight and political support.

The tighter controls show how export restrictions are evolving from direct sales bans into broader monitoring of buyers, data-center operators, and end users. That creates a more complicated compliance burden for Nvidia and its customers.

AI supply chains face deeper scrutiny

The move matters because Asia is a critical part of the global AI infrastructure buildout. If Nvidia limits sales to a smaller group of vetted buyers, some data-center projects could face delays or higher compliance costs.

For Nvidia, the challenge is balancing strong demand for AI chips with U.S. national-security rules. For buyers, access to the company’s most advanced processors will increasingly depend not only on price or capacity but also on whether they can prove the chips will not end up with restricted Chinese users.

We also reported Nvidia faces a delay for the next-generation Kyber AI platform.

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