US Approves Nvidia AI Chip Sales to Empty Chinese Office Linked to Blacklisted Firm
US officials have cleared a little‑known Chinese company, New Matrix, to receive Nvidia’s H200 AI chips despite the firm’s vacant premises and ties to a blacklisted private‑equity group, raising concerns over export‑control oversight.
A phantom company gets the green light
The U.S. Commerce Department has added New Matrix, a Chinese firm, to the list of entities cleared to purchase Nvidia’s H200 AI chips. A recent investigation by The New York Times found that the company’s “office is an empty, hollow gray shell with wires dangling from the ceiling where lights should be.” The building’s directory does not list New Matrix, and the industrial‑park management staff said they have no record of the firm at all.
Sparse public footprint
New Matrix was incorporated only 17 months ago, and online information about it is minimal. The lack of a visible workforce or operational activity raises questions about the vetting process that allowed the company to receive a license for high‑performance AI hardware.
Links to a blacklisted investor
The owners of New Matrix are connected to a Chinese private‑equity firm that the United States added to its blacklist in 2024 for activities deemed a national‑security risk. The Times report notes that this is not an isolated incident; other Chinese companies with similar ties have also been approved to buy Nvidia chips.
How Nvidia’s export restrictions have shifted
During the Biden administration, Nvidia was barred from selling its AI chips to China. The Trump administration later eased those limits after Nvidia agreed to remit 15 percent of its sales to the U.S. government. Nvidia’s CEO Jensen Huang led an aggressive lobbying campaign to secure the policy change and, according to reports, was later targeted in a spying plot allegedly orchestrated by China’s Ministry of State Security.
Growing concerns over due diligence
Industry observers and policymakers are now questioning whether the Commerce Department and Nvidia are conducting sufficient due diligence on Chinese firms that request advanced AI components. The approval of a company that appears to exist only on paper could signal a broader lapse in enforcement of trade‑restriction rules that aim to prevent sensitive technology from reaching entities with national‑security concerns.
What’s next?
The episode adds pressure on U.S. regulators to tighten export‑control reviews, especially as AI hardware becomes a strategic asset. Stakeholders are calling for clearer guidelines and more rigorous verification of foreign purchasers to ensure that high‑end AI chips do not inadvertently support prohibited activities.
