Chinese artificial intelligence companies are rushing to secure Nvidia's computing capacity abroad amid fears that a spying scandal involving CEO Jensen Huang could prompt tighter US restrictions.
Chinese companies currently circumvent chip export restrictions by leasing computing power from overseas data centers, but proposed US legislation could close that loophole.
Chinese AI stocks tumbled, with Alibaba down 7.1 percent, while gray market traders began hoarding limited Nvidia chips amid fears of a wider U.S. blowout.
Source: Reuters