After Nvidia share falls to zero in China, company closing ‘back door’ to keep its AI chips out of Chinese companies

Nvidia has reportedly launched a crackdown on its supply chain, cutting off more than half of its approved customers across Asia. According to a report by The Financial Times, the move is part of a strict new “white list” system designed to close legal loopholes and stop its powerful AI chips from being smuggled into China. The report says that over the past few months, the chipmaker has intensified its compliance checks in key Asian hubs, including Singapore, Malaysia and Japan.

Citing sources close to the matter, the report says that the renewed vetting process immediately disqualified more than 50% of Nvidia’s existing customer base in the region.