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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 Though the Trump administration later rescinded these curbs, it issued guidance emphasizing licensing requirements if AI chip use is linked to weapons of mass destruction.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.

Oracle to Offer Elon Musk’s Grok 3 AI Model to Enterprise Customers

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Oracle announced on Tuesday that it will integrate Grok 3, the latest large language model developed by Elon Musk’s xAI, into its cloud infrastructure portfolio for corporate clients, expanding its AI offerings alongside models from Meta, Mistral, and Cohere.

Grok 3, which debuted in February 2025, was previously available to premium subscribers on Musk’s X platform and to developers through xAI. Now, Oracle Cloud Infrastructure (OCI) will host the model in its data centers, allowing business users to run Grok 3 with full enterprise-grade security and data residency protections.

“Our goal here is to make sure we can provide a portfolio of models — we don’t have our own,” said Karan Batta, Oracle’s Senior VP of Cloud Infrastructure. “That’s the current strategy. We are going to be the one that offers all of them.”

This collaboration aligns with Oracle’s strategy of being a multi-model platform, enabling clients to integrate a variety of AI systems into their enterprise workflows without compromising on data sovereignty or compliance requirements.

What It Means for the Market

  • Grok 3, which competes with models from OpenAI and DeepSeek, will now be accessible to companies who prefer Oracle’s security and compliance environment.

  • Oracle’s move reflects rising demand from businesses seeking access to cutting-edge AI models without having to rely on public-facing APIs that may expose sensitive data.

This announcement follows broader trends of cloud providers forming strategic partnerships with AI startups to diversify their AI ecosystems, especially as businesses become more discerning about how and where their data is processed.

Rednote Joins Wave of Chinese Firms Releasing Open-Source AI Models

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Chinese social media platform Rednote (Xiaohongshu) has released an open-source large language model named dots.llm1, joining a growing number of Chinese tech companies making AI models publicly available. This open-source move contrasts with many U.S. tech giants like OpenAI and Google, which keep their most advanced AI models proprietary, although some American firms such as Meta have also embraced open-source AI.

The release aims to showcase China’s technological prowess, foster developer communities, and extend global influence amid U.S. export restrictions targeting China’s advanced semiconductor industry.

According to Rednote’s technical paper published last Friday on Hugging Face, dots.llm1 performs comparably on coding tasks to Alibaba’s Qwen 2.5 model but is less advanced than models like DeepSeek-V3.

Rednote, known for its Instagram-style platform where users share photos, videos, and text, ramped up AI development after OpenAI’s ChatGPT debut in late 2022. Recently, it launched Diandian, an AI-powered search app for its main platform.

Other Chinese companies following this open-source path include Alibaba, which introduced the upgraded Qwen 3 model in April, and startup DeepSeek, whose low-cost R1 model has made waves globally for its competitive performance despite lower development costs.