# Nvidia AI chips approved for sale to dubious Chinese firm

> US regulators cleared Nvidia’s H200 chips for a China‑based company that appears to exist only on paper, raising questions about export oversight.

Oossa · 2026-11-07 · https://oossa.com/en/nvidia-ai-chips-approved-for-sale-to-dubious-chinese-firm

The US Commerce Department has given the green light for Nvidia’s H200 AI processors to be sold to a Chinese supplier called New Matrix. The company’s listed office looks empty – wires dangle from the ceiling and no one can find it in the building’s directory. Yet the approval lets New Matrix import the high‑performance chips that power large language models and other AI workloads.

Nvidia had been barred from shipping its most advanced AI silicon to China under the Biden administration. The restriction was loosened after the Trump administration struck a deal that gave the US government a 15‑percent cut of all Nvidia sales to the country. Jensen Huang, Nvidia’s chief executive, also ran a lobbying push that helped secure the change.

The New York Times investigation that prompted this story found almost no public record of New Matrix. The firm was created 17 months ago, and its owners are linked to a Chinese private‑equity group that the US added to a blacklist in 2024 for national‑security concerns. According to the paper, New Matrix is not an isolated case – other companies with similar ties have also received export licenses.

Officials and analysts worry that the vetting process is too lax. If a company with only a shell office can obtain cutting‑edge chips, it may be possible for the technology to be rerouted to restricted end‑users or used in military projects, something the export rules are meant to prevent.

## Background on the export controls

Export controls on advanced semiconductors are meant to keep the most powerful AI hardware out of the hands of potential adversaries. The rules focus on chips that can train or run large models, which are seen as strategic assets. Under the 2022 Export Control Reform Act, the Commerce Department can block sales to entities linked to foreign militaries or blacklisted firms.

When Nvidia agreed to the 15‑percent revenue share, the Trump administration argued that the revenue would fund US defense and that the chips could be sold under tighter monitoring. Critics say the arrangement created a loophole, allowing companies with questionable ownership to slip through.

The recent approval for New Matrix suggests that the Department’s checks may not be catching these loopholes. The lack of a physical presence or verifiable business activity makes it hard for regulators to assess the true end‑use of the technology.

## The facts

- The Commerce Department approved sales of Nvidia’s H200 AI chips to New Matrix, a Chinese firm.
- New Matrix was founded 17 months ago and appears to have no functional office at its listed address.
- The company’s owners are tied to a Chinese private‑equity firm blacklisted by the US since 2024.
- Nvidia’s export restrictions were eased after a deal that gave the US government a 15 percent cut of all sales to China.

## Why it matters

For ordinary users, this means advanced AI hardware could end up in projects that bypass US security rules, potentially affecting global AI competition. It also shows that current export checks may not be sufficient to stop questionable firms from acquiring powerful chips. Until oversight improves, the risk of technology transfer to restricted entities remains unclear.

## Sources & references

1. [The US let Nvidia sell chips to an empty office in China](https://www.theverge.com/ai-artificial-intelligence/1029483/nvidia-ai-chips-china-blacklist-government) – The Verge, 2026-11-07

Last updated: 2026-11-07