America’s most powerful AI superchips may be in China’s hands

The U.S. built an entire export control system to keep its most powerful AI chips out of enemy hands, but a loophole may have made the system vulnerable to infiltration by China and other countries.

America’s chip export rules target where a company is headquartered, not who ultimately owns it — meaning a Chinese tech giant could set up a subsidiary in Singapore or Malaysia and buy chips the parent company never could.

‘The new Blackwell that just came out, it’s 10 years ahead of every other chip. But no, we don’t give that chip to other people.’

The Bureau of Industry and Security in the Commerce Department released new guidance Sunday, clarifying that a subsidiary of any company headquartered in a U.S. arms-embargoed nation — including