Nvidia halves approved AI chip customers in Asia

Nvidia has significantly reduced the number of customers authorized to purchase its advanced artificial intelligence chips across several Asian markets, according to a report. The move is part of a broader effort to strengthen compliance with U.S. export controls and prevent the high-performance hardware from being diverted to China.

Over the past several months, the chipmaker has intensified its due diligence and customer screening processes in Singapore, Malaysia, and Japan. This has resulted in the creation of a new "white list" of approved companies that have passed enhanced compliance checks. As a result, the number of eligible customers in the region has been cut by more than half. Many of the affected companies are described as "neo-cloud" providers, which are specialized cloud platforms built for AI workloads. Companies that failed the initial review can make changes and reapply for approval.

The stricter verification process includes Nvidia staff visiting customers' data centers, verifying contracts, and interviewing end-users to confirm the legitimacy of the businesses. The reported changes reflect growing pressure from Washington to close loopholes that have allowed...