Nvidia Corp. (NASDAQ:NVDA) has reportedly slashed the number of approved AI chip buyers across parts of Asia after introducing stricter compliance measures designed to prevent its advanced processors from reaching China.
Nvidia Tightens Customer Screening Across Asia
Nvidia has reduced by more than half the number of Asian customers authorized to purchase its AI chips after creating a new “white list” of approved buyers, Reuters reported on Monday (via the Financial Times).
The report, citing three people familiar with the matter, said the chipmaker has spent the past several months strengthening due diligence efforts in Singapore, Malaysia and Japan.
The tighter screening process is intended to ensure customers comply with U.S. export controls aimed at restricting China’s access to cutting-edge AI hardware.
According to the report, more than half of Nvidia’s previous customers—particularly smaller neo-cloud providers that rent AI computing capacity—did not make the initial approved list.
However, companies that were excluded can update their compliance procedures and reapply for approval.
Nvidia did not immediately respond to Benzinga’s request for comments.
US Export Rules Drive Nvidia’s Compliance Push
The reported changes come as Washington continues to tighten restrictions on advanced AI chip exports to China and entities linked to the country.
In May, the U.S. Commerce Department issued new guidance warning companies against allowing advanced AI chips to reach overseas subsidiaries of Chinese firms.
Officials also raised concerns that Nvidia’s latest Blackwell AI processors could be diverted to Chinese-linked organizations through third countries, including Malaysia, despite existing export restrictions.
Meanwhile, earlier this month, it was reported that Chinese officials have informed Alibaba Group Holding Ltd. (NYSE:BABA), ByteDance and DeepSeek that they could soon be cleared to purchase certain Nvidia H200 AI chips.
Price Action: Nvidia shares closed Monday down 3.52% at $203.53 and slipped another 0.14% to $203.25 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, Nvidia scores in the 98th percentile for Growth, underscoring its strong medium- and long-term price trend despite recent weakness in its short-term price trend.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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