Chinese Tech Giants Circumvent U.S. Chip Ban by Training AI Models Offshore
Alibaba and ByteDance are reportedly shifting artificial intelligence training operations to Southeast Asian data centers to access Nvidia's advanced chips. The MOVE comes as U.S. export restrictions tighten, blocking Chinese firms from obtaining cutting-edge semiconductors domestically.
Financial Times sources reveal these companies now conduct large language model training in Singapore and Malaysia. Yet a critical constraint remains: Chinese regulations prohibit exporting private client data, forcing firms to keep domestic AI training within national borders.
The strategic relocation follows Washington's abrupt ban on Nvidia's H20 AI chips, accelerating China's technological decoupling from Western suppliers. Data center leasing activity in Southeast Asia has surged as Chinese tech giants seek workarounds to maintain competitive AI development.
