Nvidia Gains as China Circumvents Chip Restrictions Through Offshore AI Training
Nvidia shares ROSE 1.37% to $180.26 as Chinese tech firms adapt to U.S. chip restrictions by shifting AI training operations overseas. Alibaba and ByteDance are leasing Southeast Asian data centers to maintain access to Nvidia's advanced hardware, now limited by export controls.
The workaround highlights China's reliance on foreign semiconductor technology despite aggressive domestic chip development efforts. DeepSeek, a rare exception, stockpiled Nvidia chips before bans took effect—a temporary solution underscoring the performance gap in local alternatives.
Market momentum reflects broader AI sector dynamics, where access to cutting-edge chips remains pivotal. Nvidia's dominance faces challenges as geopolitical tensions reshape supply chains and accelerate self-sufficiency drives.
