Chinese AI firms seek overseas Nvidia computing capacity

Chinese artificial intelligence companies are seeking to rent Nvidia-powered computing capacity at data centres outside China, as firms worry that a controversy involving Nvidia chief executive Jensen Huang could prompt tighter U.S. restrictions on remote access to advanced chips, three people familiar with the matter said.

A major Chinese cloud provider has discussed internally whether to secure overseas capacity, while some companies have contacted data-centre operators about reservations, the people said. Smaller AI firms are also considering arrangements, including with providers in Southeast Asia. The discussions do not establish that any capacity has been reserved.

The companies’ concern centres in part on the Remote Access Security Act, a U.S. bill that would give the Commerce Department authority to regulate cloud access to restricted technology. The House passed the measure in January by 369-22, and it awaits Senate action. Current U.S. restrictions bar exports to China of Nvidia’s most advanced AI chips, but Chinese firms can access processors hosted at data centres abroad by renting computing power.

The same people said Chinese grey-market traders and intermediaries...