Export Controls Were Supposed to Keep AI Chips Out of China. The Rental Loophole Shows Why They Haven't
A 247wallst.com article by Trey Thoelcke examines how data centers in Southeast Asia, notably Johor, Malaysia, lease Nvidia compute to Chinese AI firms like DeepSeek — an arrangement Bloomberg's Odd Lots says is not illegal — and argues the export controls' fate rests on Washington trusting that chips sold to allies stay put. Nvidia shares traded at $160.56, down 7.6% on the day, the Trump administration is not applying the AI Diffusion rule, CFO Colette Kress says Hopper shipments to China made up less than 1% of data center revenue, and the article recommends watching for any move to close the rental loophole.
