Nvidia accused of supplying chips to shell companies in China

The US Department of Commerce and Nvidia have faced criticism over insufficient vetting of Chinese recipients of their accelerators. As reported by The New York Times, the list of approved equipment buyers included a company called New Matrix, whose offices turned out to be empty in practice.

According to investigative materials, the designated premises are nothing more than an empty gray shell with no employees or infrastructure capable of utilizing AI chips. The report concerns the supply of high-cost components from the H200 line, the export of which to the PRC is strictly regulated by government agencies to prevent unauthorized access to advanced computing power.

Experts note a lack of due diligence by regulators and the manufacturer in verifying legal entities. Such loopholes in sanctions compliance undermine the effectiveness of export restrictions on semiconductor supplies.