Malaysia Investigating Reports of Chinese Firm Using Nvidia Chips
Malaysia said it's looking into reports that a Chinese company is using servers with Nvidia chips and artificial intelligence chips for large language models training in Malaysia. The country's Ministry of Investment, Trade and Industry is "still in the process of verifying the matter with relevant agencies if any domestic law or regulation has been breached."
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The ministry stressed that servers using Nvidia chips and AI chips aren't classified as "controlled goods" under the Malaysian Strategic Trade Act of 2010, and businesses operating in Malaysia are "free to make their own commercial decisions, provided they operate within the scope of Malaysian laws and regulations." But the country also said it's working with other governments to monitor trade in sensitive goods, including any shipments that might violate another country's export laws.
"Malaysia stands firm against any individual or company that attempts to circumvent export controls or engage in illicit trade activities," the ministry said. "MITI remains committed to facilitating legitimate trade and fostering a secure and responsible investment and trade environment, ensuring that all technology-related investments and trade align with international best practices as well as with multilaterally agreed commitments."
A top Malaysian trade official in May said the Trump administration was pushing the country to strengthen its guardrails around sensitive American technologies, including advanced chips, that are at risk of being diverted to China (see 2505220040.