Nvidia tightens AI chip sales in Asia with new customer ‘White List’

Nvidia (NVDA.O), opens new tab has more than halved the number of Asian customers authorised to buy its AI chips after introducing a “white list” of companies that passed tougher ​compliance checks to prevent the products from reaching China, the ​Financial Times reported on Monday.

Over the past few months, Nvidia ⁠has stepped up due diligence in Singapore, Malaysia and Japan, the ​report said.

More than half of ​its previous customers, particularly neo-cloud providers, failed the initial review and were removed from the list, though they can reapply after making changes, the report added.

The tighter scrutiny comes as the ‌Trump ⁠administration seeks to prevent advanced U.S. chips from reaching Chinese entities through third countries.

The US Commerce Department issued guidance in May aimed at curbing advanced AI chips from reaching overseas subsidiaries of Chinese companies, highlighting ​concerns that Nvidia’s ​cutting-edge Blackwell processors ⁠may have been exported to Chinese-linked entities in countries such as Malaysia despite U.S. restrictions.

Nvidia has tightened ​compliance procedures following pressure from Washington, ​adding that ⁠staff now visit customers’ data centres, verify contracts and interview end users as part of the checks.

The U.S. Department of Commerce is also involved, ⁠providing ​oversight and political backing, the report said.

The ​department did not immediately respond to a Reuters request for comment outside regular business hours. Reuters