The US Commerce Department plans to prevent Chinese entities from remotely controlling Nvidia chips located outside China, closing a loophole exploited through cloud computing. Under guidance clarified in May 2026, China-headquartered companies must obtain licenses to use advanced GPUs remotely, including Nvidia’s Blackwell and H200 models, even when the hardware is deployed abroad. The move follows the Remote Access Security Act, which the House of Representatives passed in January 2026 by a vote of 369 to 22 and which treats cloud-based access as an export. Ongoing investigations into diversion routes through Southeast Asia and concerns about roughly 600,000 H200 chips awaiting mainland China import approval in Hong Kong remain key variables, while chip-tracking provisions in the FY2027 defense authorization bill could tighten controls further. For Nvidia, these rules progressively reduce the number of customers allowed to use its most advanced products and require cloud providers to verify the ownership and control of their customers more closely.
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