Nvidia has introduced a new requirement for its cloud computing clients, mandating that at least 51% of their services must be sold to non-Chinese companies. This policy aims to restrict the access of Chinese entities to advanced AI computing power through overseas data centers.
The chipmaker is intensifying its oversight of Asian customers following guidance from the US Commerce Department issued in May 2026. In July 2026, Nvidia reduced its list of approved Asian clients by more than 50%, significantly impacting neocloud providers in Singapore, Malaysia, and Japan.
The new compliance regime includes rigorous vetting processes, such as site visits, contract reviews, and end-user interviews. These measures are designed to prevent the diversion of high-end hardware, including Blackwell-series processors, to Chinese firms that have previously utilized overseas infrastructure.
Nvidia has also updated its financial reporting for fiscal 2026 to provide greater transparency regarding customer locations. While demand for advanced chips remains high, providers failing to rebalance their client base toward non-Chinese customers risk losing access to Nvidia hardware.
