The U.S. Department of Commerce on May 31, 2026 moved to close a loophole that may have allowed export of Nvidia Blackwell and Rubin processors and AMD MI350x chips to Chinese-headquartered entities operating outside China (e.g., Malaysia subsidiaries).
BIS issued weekend guidance enforcing license requirements for advanced chips to entities headquartered in China regardless of shipment destination. The opening was created when the Trump administration announced in May 2025 it would not enforce the Biden-era AI Diffusion rule.
Nvidia confirmed the guidance aligns with existing licensing obligations. The guidance does NOT require data centers to decommission already-deployed chips.
Chris McGuire estimated “hundreds of thousands” of chips may have shipped through the loophole — unverified expert estimate. Remaining gap: TSMC foundry due diligence requirements for Chinese front companies not addressed.