Alibaba, ByteDance Exploit Offshore Loopholes for AI Chip Access
Chinese tech giants Alibaba and ByteDance are circumventing U.S. export restrictions by leveraging Southeast Asian data centers to access Nvidia's advanced AI chips. The Financial Times reports these firms are training large language models through cloud-based infrastructure in Singapore and neighboring markets, exploiting regulatory gaps in semiconductor controls.
U.S. export rules currently lack clear provisions against remote access to restricted hardware. This oversight enables Chinese companies to maintain AI development momentum without physical chip transfers. Cloud providers in the region report surging demand for GPU capacity as the workaround gains traction.
The strategic pivot highlights both the global AI arms race and the unintended consequences of fragmented tech regulation. Investors are monitoring how offshore cloud hosts may benefit from this geopolitical tech arbitrage.
