Nvidia NASDAQ:NVDA has reduced the number of Asian companies eligible to purchase its artificial intelligence chips after introducing tougher customer screening measures designed to comply with U.S. export restrictions, according to a Monday Financial Times report.
Nvidia has increased compliance checks in Singapore, Malaysia and Japan in recent months as regulators step up efforts to prevent advanced AI chips from being redirected to China. The report cited people familiar with the matter.
The revised review process has removed more than half of the chipmaker's previous customers from its approved buyer list, with several neo-cloud providers among those affected. Businesses that are not approved initially can submit additional compliance documents and customer information before seeking approval again.
Nvidia said it reviews customer ownership, intended end users, purchase contracts and planned data center deployments before authorizing sales. The company added that it follows all applicable export control laws and expects its customers and partners to do the same. The tighter oversight comes as Washington increases scrutiny of potential shipments of advanced AI chips to China through third countries.