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Malaysia Investigates Chinese Firm’s Use of Nvidia AI Chips Amid Export Controls

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Malaysia’s trade ministry is currently investigating reports that a Chinese company operating in the country is using Nvidia AI chips and servers for training large language models, according to a ministry statement on Wednesday. The inquiry aims to determine if any domestic laws or regulations have been violated.

The Wall Street Journal previously reported that Chinese engineers arrived in Malaysia in early March carrying suitcases filled with hard drives. They were reportedly working to develop AI models using data centers equipped with Nvidia chips.

These developments come against the backdrop of U.S. restrictions on exports of advanced AI chips, introduced during the Biden administration, which capped the number of AI chips Malaysia could receive. Though the Trump administration later rescinded these curbs, it issued guidance emphasizing licensing requirements if AI chip use is linked to weapons of mass destruction.

Malaysia’s ongoing verification reflects growing global scrutiny over technology transfer and AI development involving Chinese entities.

AI Chip Firm Cerebras Partners with Mistral, Claims AI Speed Record

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Cerebras Systems, a Silicon Valley-based AI chip manufacturer backed by UAE tech firm G42, announced on Thursday its partnership with French AI company Mistral, helping it achieve a new speed record for AI responses.

Mistral, known for its open-source AI technology, aims to rival competitors such as Meta Platforms and China’s DeepSeek, both of which are challenging OpenAI’s dominance in the AI space. On Thursday, Mistral launched a new app, Le Chat, capable of generating responses at a speed of 1,000 words per second.

Cerebras provided the computational power to achieve this speed, which it claimed surpasses the performance of both OpenAI and DeepSeek, making Mistral’s Le Chat the fastest AI assistant globally.

Cerebras, which has filed for an initial public offering currently under U.S. regulatory review due to G42’s involvement, is one of the few major challengers to Nvidia in the AI chip market for training large models. However, its collaboration with Mistral focuses on inference, the process of serving model-based applications to users in real-time.

Andrew Feldman, Cerebras CEO, emphasized that speed in delivering answers has become a key focus as competitors close in on OpenAI’s models. “You want better answers. And to get better answers, you need more compute at inference time,” Feldman told Reuters. He also expressed pride in the collaboration with Mistral, calling it Cerebras’ first major win with a top-tier AI model developer.