The US company Nvidia Corp. has more than halved the number of Asian customers authorised to purchase its artificial intelligence chips, according to the Financial Times, citing sources.
According to these sources, Nvidia has stepped up its due diligence checks in Singapore, Malaysia and Japan over the past few months. The chip manufacturer has created a ‘whitelist’ of companies that have passed stricter compliance checks, aimed at preventing its products from ending up in China.
The updated screening process has excluded more than half of Nvidia’s former customers. Companies that failed the initial screening may, however, make changes and reapply, one of the sources said.
These steps reflect broader US efforts to close loopholes in export controls that have allowed advanced AI chips to reach China via third countries, despite long-standing restrictions. Nvidia has tightened its compliance checks following pressure from Washington, which is seeking to shut down intermediaries that have fuelled a thriving ‘black market’ in chips, the FT reports.
Although Nvidia has always checked customers for compliance with US export controls, it has recently expanded both its compliance requirements and its on-site inspections.
Sources have reported that as part of the new checks, Nvidia staff are visiting customers’ data centres, reviewing contracts and interviewing end-users to verify the legitimacy of the business. According to one of them, the US Department of Commerce is also involved in this process, providing oversight and policy support.