The US let Nvidia sell chips to an empty office in China
What happened
The US government has allowed Nvidia to sell its H200 AI chips to several Chinese companies, including one called New Matrix. New Matrix, created 17 months ago, appears to have no real business operations at its listed address. The company is linked to a Chinese private equity firm that has been under US trade restrictions since 2024. This approval comes after previous limits on Nvidia's chip sales to China were loosened under the Trump administration.
Key details
- Nvidia's H200 AI chips are involved in the approved sales.
- New Matrix was established 17 months ago and is not listed at its supposed office location.
- New Matrix's owners are connected to a Chinese private equity firm blacklisted by the US since 2024.
- The US government now receives a 15% share of Nvidia's sales to China.
- Nvidia's CEO, Jensen Huang, led lobbying efforts to relax export restrictions.
Why it matters
US chipmakers and Chinese technology firms are directly affected by these export approvals, as they change who can legally access advanced AI hardware. The decision means that companies with ties to blacklisted entities may be able to obtain restricted technology, creating a risk for US national security controls. Government agencies responsible for export oversight now face scrutiny over their vetting processes, which could lead to changes in how future approvals are handled.