The US let Nvidia sell chips to an empty office in China
News Source
β’2026-11-07T10:43:45-05:00
π° What Happened
The US government is approving sales of Nvidia's H200 AI chips to Chinese companies with links to blacklisted firms. One approved buyer, New Matrix, appears to barely exist. Reporters found empty offices with wires hanging from the ceiling.
The New York Times found little evidence the company does real business. It was created 17 months ago, it is missing from the building directory, and the industrial park's managers had no record of it. Its owners have ties to a Chinese firm blacklisted by the US since 2024.
Nvidia was barred from selling advanced chips to China under President Biden. The Trump administration eased the rules after Nvidia agreed to give the government 15 per cent of sales.
π The Backstory
AI chips are treated as a national security issue because they can be used for military research and surveillance. The US has spent years limiting what China can buy. Nvidia is the world's leading maker of these chips.
Critics say the approval system is easy to game. Shell companies can be set up to buy hardware for others. Nvidia has said it follows US export rules.
π― Why It Matters
Fast AI chips can help militaries and spy agencies. Weak checks mean sensitive technology may reach groups the US says it wants to block.
The US government is approving sales of Nvidia's H200 AI chips to Chinese companies with links to blacklisted firms. One approved buyer, New Matrix, appears to barely exist. Reporters found empty offices with wires hanging from the ceiling.
The New York Times found little evidence the company does real business. It was created 17 months ago, it is missing from the building directory, and the industrial park's managers had no record of it. Its owners have ties to a Chinese firm blacklisted by the US since 2024.
Nvidia was barred from selling advanced chips to China under President Biden. The Trump administration eased the rules after Nvidia agreed to give the government 15 per cent of sales.
AI chips are treated as a national security issue because they can be used for military research and surveillance. The US has spent years limiting what China can buy. Nvidia is the world's leading maker of these chips.
Critics say the approval system is easy to game. Shell companies can be set up to buy hardware for others. Nvidia has said it follows US export rules.
Fast AI chips can help militaries and spy agencies. Weak checks mean sensitive technology may reach groups the US says it wants to block.