Key Takeaways
1. Nvidia’s CEO Jensen Huang stated there’s “no evidence of any AI chip diversion” to restricted areas, emphasizing the heavy and integrated design of their new data-center systems.
2. Customers and governments are closely monitoring compliance with regulations to continue purchasing Nvidia products, and Huang supports the elimination of previous “AI diffusion” restrictions.
3. There is rising demand for Nvidia accelerators in the Middle East, particularly from the UAE and Saudi Arabia, which Huang believes can be met without changing current production allocations.
4. Critics highlight concerns over gray markets, with reports of Chinese buyers acquiring GPUs through shell corporations and illegal sales, prompting investigations in Singapore and calls for action from U.S. officials.
5. Lawmakers in Washington are considering geo-tracking for high-end processors due to concerns about smuggling, but Nvidia argues that tracking individual components after shipment is nearly impossible.
Nvidia’s CEO Jensen Huang made a stop in Taipei during Computex 2025, where he strongly stated that there’s “no evidence of any AI chip diversion” to restricted areas. In an interview with Bloomberg, he explained that data-center systems designed with the newly introduced Grace Blackwell architecture are quite heavy, nearly two tons, and are shipped as integrated racks, which makes it very difficult for any secret exports to happen.
Monitoring and Compliance
Huang also emphasized that both customers and governments are well aware of the regulations and “monitor themselves very carefully,” as they wish to continue purchasing Nvidia products. He mentioned that Washington’s choice to eliminate prior “AI diffusion” restrictions was a wise decision, aligning with his ongoing belief that limiting American technology abroad is fundamentally incorrect.
Rising Demand in the Middle East
These comments come at a time when the Middle East, especially the United Arab Emirates and Saudi Arabia, are looking for more Nvidia accelerators to support their local AI initiatives. Huang noted that effective production planning could meet this demand without needing to alter current allocations.
Concerns Over Grey Markets
However, critics argue that the situation is more complicated than it appears. Reports from this year indicate that Chinese buyers are acquiring H-class GPUs through shell corporations in Malaysia, Vietnam, and Taiwan; one reseller even showcased illegal H200 boards on social media. In response, Singapore has started investigations, and U.S. officials have urged Malaysian authorities to address what they describe as a rapidly growing gray market, which has seen imports of advanced GPUs surge more than 3,400 percent.
Legislative Proposals
In Washington, lawmakers are contemplating a requirement for manufacturers to implement geo-tracking on high-end gaming and AI processors, claiming that weight isn’t a sufficient deterrent to smuggling—pointing out that stolen cars frequently cross borders. Nvidia has responded by stating that once their servers leave the company, tracking individual components is nearly impossible, highlighting the disconnect between regulatory goals and actual technical capabilities.
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