The U.S. Department of Commerce on Sunday moved to close a potential loophole that may have allowed exports of advanced chips to Chinese entities located outside China.
The new guidance targets subsidiaries of Chinese AI firms based in countries like Malaysia, which may have been receiving Nvidia's most sophisticated processors without licenses.
The loophole existed for almost a year since the Trump administration decided not to enforce certain rules.
Industry sources estimate that hundreds of thousands of chips may have been exported during this period.
