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00:02The U.S. Department of Commerce closed a loophole that had allowed advanced AI chips from NVIDIA
00:07and advanced micro devices to reach Chinese firms operating outside of China, according to Benzinga.
00:13The Commerce Department's new guidance reveals that subsidiaries of Chinese AI firms in countries
00:18such as Malaysia received these chips for nearly a year. The loophole opened in May 2025,
00:24when the department chose not to enforce the AI diffusion rule during the final days of the
00:28Biden administration. The new rules impose license requirements for advanced chips on entities
00:34headquartered in China, regardless of where they operate. The guidance does not require data centers
00:39to stop using existing chips or halt-related computing services. Reports indicate that over
00:4420% of NVIDIA's fiscal year 2026 compute revenue still came from China through intermediaries.
00:50For all things money, visit Benzinga.com.
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