Chinese Tech Firms Circumvent U.S. Chip Restrictions via Southeast Asian Data Centers
Alibaba and ByteDance are training AI models in Southeast Asian data centers to access restricted Nvidia chips, according to sources familiar with the arrangements. The workaround involves lease agreements with facilities operated by non-Chinese entities, providing access to hardware otherwise unavailable under U.S. export controls.
This offshore strategy gained urgency after April 2025 restrictions on Nvidia's H20 chips. While most firms utilize foreign infrastructure, DeepSeek stands apart—training models domestically using pre-ban Nvidia chips while collaborating with Huawei on next-generation domestic alternatives.
The migration underscores how geopolitical tensions reshape global tech supply chains. Companies navigate restrictions through geographic arbitrage, maintaining access to cutting-edge semiconductors despite escalating trade barriers.
