U.S. finalizing rule to block China’s remote AI chip access- The Information

 The Commerce Department is preparing to finalize a rule that will prevent Chinese artificial intelligence companies from remotely accessing advanced AI chips through data centers located in other countries, The Information reported on Wednesday, citing two people familiar with the matter.

The rule could be announced this month and will expand current semiconductor-related controls from the department’s Bureau of Industry and Security. The expanded controls will apply to seven additional countries, including Malaysia, Singapore and Thailand, the report said.

The measure aims to prevent remote access and chip smuggling into China, and comes amid a growing row over Nvidia’s potential links to China after CEO Jensen Huang admitted to an affair with a suspected Beijing spy.

Chinese internet giants including Tencent, Alibaba, and Bytedance have all signed offshore data center agreements granting them access to Nvidia’s top chips to train their artificial intelligence models. But said deals are facing increasing scrutiny both abroad and home, especially as Beijing pushes for the use of more domestic chips. 

The Commerce Department is consulting with other government agencies on the rule before it can be finalized, the Information reported.

Earlier on Wednesday, Axios reported that U.S. President Donald Trump had pushed for tighter export controls against China to prevent illegal chip smuggling to the country. But Commerce Secretary Howard Lutnick was a major opponent to the measure.