Chinese AI Firms Rush to Rent Nvidia Chips Abroad Fearing Tighter US Remote-Access Rules
Key Takeaways
- •Chinese AI companies, including a major cloud provider and smaller labs, are seeking to reserve Nvidia computing capacity at overseas data centers, with Southeast Asian providers a key focus, ahead of potential US restrictions.
- •The Remote Access Security Act (RASA), passed by the House 369-22 in January and awaiting Senate action, would give the Commerce Department authority to regulate remote, cloud-based access to restricted US technology.
- •The urgency follows a scandal in which Nvidia CEO Jensen Huang admitted infidelity, and The New York Times reported his partner Alice Huang was assessed by US authorities as a Chinese intelligence asset, a claim Reuters could not verify and China has denied.
- •Grey-market traders in China have begun stockpiling restricted Nvidia chips, and last month a university tied to the People's Liberation Army purchased H200 chips despite being on a US export blacklist.
- •Nvidia shares were down 6.15% in recent trading and have declined 9.4% this year, though the stock carries a Strong Buy rating on TipRanks with an average price target of $311.17.
Chinese artificial intelligence companies are moving to rent Nvidia-powered computing capacity at data centers outside China, three people familiar with the matter told Reuters. The companies are worried that a scandal involving Nvidia chief executive Jensen Huang could push Washington to tighten rules on remote chip use, and they want to lock in capacity before any change takes effect. The scramble comes as US lawmakers weigh new restrictions on remote access to American chip technology.
The Reuters report was highlighted in a post on X:
CHINESE AI FIRMS ARE RUSHING TO RENT NVIDIA $NVDA CHIP CAPACITY AT DATA CENTERS OUTSIDE CHINA, FEARING THE HUANG SPY SCANDAL COULD SPUR US CURBS ON REMOTE ACCESS; GREY-MARKET TRADERS ARE STOCKPILING RESTRICTED NVIDIA CHIPS: REUTERS
— Wall St Engine (@wallstengine) November 12, 2026
How Chinese Firms Use Overseas Data Centers
The United States limits exports of Nvidia's most advanced AI chips to China, but Chinese firms can still reach similar hardware by renting computing power at data centers located outside the country.
According to the three sources, a major Chinese cloud provider has discussed internally whether to lock in overseas Nvidia capacity. Some companies have also contacted data center operators about reserving computing power, while smaller AI labs are weighing similar steps. Two of the people said Chinese firms are approaching major providers of rented computing power in Southeast Asia. That focus puts Southeast Asia's data center operators in the middle of the US-China technology dispute.
The sources declined to be named and did not identify the cloud provider, describing the matter as sensitive.
Advanced Nvidia chips train and run the large AI models behind chatbots and other generative AI tools. Restricting overseas cloud access would make it harder for Chinese developers to obtain high-end computing power without importing chips directly.
The Bill Behind the Concern
The firms fear the controversy surrounding Huang could add momentum to the Remote Access Security Act, known as RASA. The bill would give the Commerce Department power to regulate remote, cloud-based access to restricted technology. The House of Representatives passed the legislation in January by a vote of 369 to 22, and it now awaits action in the Senate. For companies weighing rental commitments, Senate action on the bill is the immediate checkpoint; if RASA is enacted, the Commerce Department would gain authority over precisely the cross-border cloud arrangements now being negotiated.
The Huang Scandal
Huang said on Sunday that he had been unfaithful to his wife. The New York Times reported that the woman was Alice Huang, a former executive at Singapore-based cloud company Megaspeed, and that US authorities had concluded she was a Chinese intelligence asset. Reuters could not verify that claim, and China has denied it.
Two people said Alice Huang had business and investment ties with Chinese technology firms, including Tencent and Alibaba. Neither company responded to requests for comment.
Singapore filings show that an Alibaba subsidiary, Apex Enterprise Solutions, financed Speedmatrix, a Malaysian company linked to Megaspeed. Megaspeed has faced scrutiny over suspicions that it helped Chinese customers reach restricted chips, which it denies.
Grey-Market Stockpiling and Enforcement Actions
Grey-market traders in China have also started stockpiling restricted Nvidia chips, two sources said. Last month, a Chinese university tied to the People's Liberation Army bought H200 chips despite being on a US export blacklist.
In March, US prosecutors charged Super Micro Computer co-founder Yih-Shyan "Wally" Liaw and two others with conspiring to divert Nvidia-powered servers to China. Prosecutors said the buyers purchased about $2.5 billion of servers from Super Micro between 2024 and 2025. The defendants have not been convicted. Taken together, the episodes show US enforcement pressure currently running through physical shipments — blacklists and prosecutions — while the remote-access channel remains the gap RASA is designed to close.
Market Reaction
Nvidia shares were down 6.15% in recent trading and have declined 9.4% this year. On TipRanks, the stock carries a Strong Buy rating, based on 32 Buy ratings and three Holds, with an average price target of $311.17.
This report is based on Reuters reporting available here. The original article appeared on CoinCentral.
