Chinese AI firms rush to secure overseas Nvidia capacity as spy scandal stirs fear of US curbs

Chinese AI companies are trying to rent Nvidia-powered computing at data centers outside China, fearing the Jensen Huang scandal will spur Washington to close the loophole that lets them use restricted chips remotely, Reuters reports, citing three people familiar with the matter. A major Chinese cloud provider has discussed locking in overseas capacity, smaller labs are approaching Southeast Asian providers, and grey-market traders have begun stockpiling restricted chips. The companies worry the scandal will add momentum to the Remote Access Security Act, which passed the House 369-22 in January and would let Commerce regulate cloud access to controlled technology.