How the recommendation works
The instruction was delivered verbally through sales representatives and regional teams, the Financial Times reports. Nvidia is not asking providers to terminate contracts immediately: the guidance concerns future contracts, and cloud clients can decide whether to follow it.
How cloud services bypass export restrictions
US export rules restrict chip shipments but generally do not cover remote access to chips through cloud services. Chinese AI developers can therefore rent computing capacity in overseas data centers and use Nvidia’s advanced chips without importing the hardware into China.
US authorities have already examined whether Chinese companies are accessing such chips through overseas data centers. Allegations involving Moonshot AI, the developer of the Kimi chatbot, drew attention.
Dataist’s take: Nvidia’s recommendation is aimed at limiting access through cloud services, which existing shipment rules do not cover. But it remains voluntary and applies only to future contracts, so it does not close off deals already signed.
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