Secret smuggling: Chinese engineers steal AI secrets in Malaysia!
Chinese engineers copy AI models in Malaysia, while the USA exacerbates export hurdles for Nvidia chips.

Secret smuggling: Chinese engineers steal AI secrets in Malaysia!
Chinese engineers seem to have come into focus on international technology competitions. According to the Wall Street Journal In March engineers traveled to Malaysia. There they had hard drives with them to copy AI models that were developed in the country. These models are based on computer chips from the US manufacturer Nvidia, which is considered a pioneer in the development of chips for generative AI applications.
The Malaysian government recently announced that reports are being examined that a Chinese company is trying to avoid US export restrictions on AI chips. The company should use Nvidia chips in servers in Malaysia, which further reinforces the concerns of the US government about the possible abusive use of this technology by China.
US export restrictions and their effects
The bidet government pursues the goal of securing the technological lead of the United States in AI development. This is done by restricting China's access to state -of -the -art computer chips. However, this also has an impact on the US market itself. Nvidia boss Jensen Huang emphasizes that these export hurdles endanger the growth of his company. He also warns that such restrictions could lead to China taking the lead in the AI sector.
Huang expresses that the US government incorrectly assumed that China cannot develop its own chips for artificial intelligence. Nvidia estimates that the export restrictions in the current quarter could cause sales of up to eight billion dollars. Nevertheless, the company plans to sell AI chips to other countries, such as Saudi Arabia, which is considered an opportunity in the middle of the restrictions.
New regulations live from national security concerns
A new framework for exporting progressive computer chips was proposed by the outgoing US government. The aim is to reconcile national security concerns with the economic interests of manufacturers and partner countries. National security advisor Jake Sullivan has emphasized that there is a risk that China could dominate future development in the field of AI.
These new regulations could not only affect American industry, but also European countries such as Portugal and Switzerland. The export controls could affect up to 120 countries, and under the conditions, users could acquire up to 50,000 graphics processors per country outside of the most important allies.
A group of technology companies, however, warns of possible negative effects on global supply chains that could arise from these new regulations. In this context, GDS Holdings, a Chinese data center developer, could be significantly affected. The upcoming Republican government could make the final decision about these regulations and put more weight on the interests of industry.