Nvidia H200 AI Chips Sold to Chinese Company Operating from Empty Offices, Raising Export Control Concerns
The U.S. Commerce Department approved Nvidia to sell advanced H200 AI chips to a Chinese company named New Matrix, which, according to a New York Times investigation, operates from vacant offices. New Matrix was listed among approved firms to receive Nvidia's powerful AI accelerators, despite its registered address revealing empty premises with no visible business operations. This situation raises significant questions about the effectiveness of current U.S. export control measures designed to prevent China from accessing technology that could enhance its military capabilities or surveillance systems. The H200 chips are high-performance GPUs specifically designed for AI workloads and are subject to strict licensing requirements for export to China. The investigation suggests that neither the Commerce Department nor Nvidia conducted adequate on-site inspections, relying instead on paperwork and remote verification, which proved insufficient in detecting the shell corporate structure.