The New York Times reports that New Matrix, an approved Nvidia chip recipient, operates an empty office. The Commerce Department approved sales of Nvidia’s H200 AI chips to New Matrix despite the firm’s lack of physical presence. This approval happened despite the company having no office space.
New Matrix’s owners are linked to a Chinese private equity firm blacklisted by the US since 2024. The Commerce Department approved sales to firms with ties to blacklisted entities, indicating a pattern of oversight lapses. Nvidia agreed to give the US government a 15-percent cut of sales to China to relax export restrictions.
Nvidia CEO Jensen Huang engaged in a lobbying campaign to secure relaxed chip sales to China. The approval of sales to firms with ties to blacklisted entities indicates a pattern of oversight lapses. This reveals a significant regulatory gap in the current export control framework.
