US approves Nvidia chip sales to Chinese firm with empty offices

The United States government has authorised the sale of Nvidia’s H200 artificial intelligence chips to Chinese entities that maintain connections with blacklisted companies. Reports indicate that New Matrix, a firm included on the list of approved buyers, operates from an office space that appears to be vacant. Investigations have found the premises to be a hollow structure with exposed wiring and no functional lighting. The company was established only 17 months ago, yet there is minimal online information regarding its operations. Local directories and property management agencies at the listed address have no record of the firm, raising significant questions about its actual existence.

Concerns have emerged that neither the Commerce Department nor Nvidia is conducting adequate due diligence when vetting Chinese firms for chip purchases. The limited information available regarding New Matrix suggests its owners have ties to a Chinese private equity firm that has been subject to US government blacklisting since 2024. This instance appears to be part of a broader pattern where companies linked to entities facing national security trade restrictions are being cleared to acquire Nvidia hardware. Such lapses in oversight have prompted scrutiny of the vetting processes used to determine eligibility for these advanced technology exports.

The regulatory environment for these sales has shifted under the current administration. Restrictions that were in place during the Biden presidency have been relaxed following an agreement in which Nvidia committed to providing the government with a 15 per cent share of its sales revenue. The company’s chief executive, Jensen Huang, has also engaged in a substantial lobbying campaign. These developments occur against a backdrop of heightened geopolitical tensions, including reports that Huang was targeted by China’s Ministry of State Security in a spying plot.