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 Though the Trump administration later rescinded these curbs, it issued guidance emphasizing licensing requirements if AI chip use is linked to weapons of mass destruction.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

Nvidia to Participate in China Supply-Chain Expo in July for First Time, CCTV Reports

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U.S. chip giant Nvidia (NVDA.O) will attend the China International Supply Chain Expo in Beijing this July for the first time, according to Chinese state broadcaster CCTV.

The expo, now in its third edition, will take place from July 16 to 20 and feature more than 230 new Chinese and foreign participants, CCTV reported. Nvidia, the market leader in artificial intelligence-related chips, faces challenges in maintaining its share of the Chinese market amid tightening U.S. export controls restricting China’s access to advanced chips.

While the expo is not typically a venue for major deals, it offers foreign companies an important platform to demonstrate their commitment to the Chinese market. The event’s inaugural edition in 2023 saw Premier Li Qiang emphasize the reliability of Chinese supply chains, especially as some Western countries sought to reduce dependence on China.

Despite escalating trade tensions with the U.S., American companies will make up the largest group of foreign participants at this year’s expo, with a reported 15% increase over last year, according to CCTV.

Deutsche Telekom and Nvidia Team Up to Build AI Cloud for European Manufacturers in Germany

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Deutsche Telekom and Nvidia announced a strategic partnership on Friday to create an artificial intelligence cloud tailored for European manufacturers, based in Germany. Nvidia will provide 10,000 graphics processing units (GPUs) to be integrated into Deutsche Telekom’s existing data centers as part of this initiative.

The project aims for implementation by 2026 and represents a critical step toward building large-scale data centers, which are key to Germany’s push to modernize its industrial sector. This move also aligns with the European Union’s broader goal to close the AI infrastructure gap with global competitors like the U.S. and China.

Nvidia CEO Jensen Huang revealed plans for the AI cloud platform in Germany earlier this week and announced Deutsche Telekom’s participation during a meeting with German Chancellor Friedrich Merz.

Merz emphasized the significance of investments in AI infrastructure for Germany’s innovation and economic future, praising Nvidia and its partners’ commitment. He described the partnership as a vital step for strengthening Germany’s digital sovereignty.

GPUs have become essential for advancing AI capabilities. Under Chancellor Merz’s leadership, Germany plans to develop large data centers supported by state subsidies covering 35% of costs, while the industry is expected to cover the remaining 65%. The government aims to secure up to 100,000 GPUs to meet growing AI demands.

Earlier this year, the European Commission unveiled a $20 billion funding plan to accelerate AI data center construction across Europe.

Deutsche Telekom recently announced collaborations with companies like SAP, web hosting firm Ionos, and retailer Schwarz to seek EU support for building large data centers in Germany.

Nvidia is also working with European AI company Mistral to develop AI computing platforms powered by 18,000 Nvidia GPUs to serve European businesses.