US approves Nvidia chip sales to Chinese firm with empty offices
Commerce Department cleared a company created 17 months ago to buy H200 processors despite little evidence of its physical presence.
By Julia Wang ·
New Matrix, a Chinese firm created just 17 months ago, was approved by the US government to purchase Nvidia H200 AI chips despite having no visible office space. The company’s listed address contains a hollow gray building where wires dangle from the ceiling in place of lights.
The New York Times reported that neither the Commerce Department nor Nvidia appears to have performed standard vetting on the buyer. The firm is listed among approved purchasers even though its name does not appear in the building’s company directory. Staff at the nearby property management agency confirmed they hold no record of New Matrix.
The lack of verifiable details raises questions about the buyer’s legitimacy. Online information about the company is sparse. Its owners maintain ties to a Chinese private equity firm that the US government has blacklisted since 2024.
This case fits a pattern of approvals involving companies connected to entities facing national security trade restrictions. The government is allowing sales of advanced AI chips to firms with such links, suggesting gaps in the current review process.
The approval comes after the Trump administration relaxed limits on Nvidia’s sales to China that were in place during the Biden presidency. Nvidia agreed to pay the government a 15 percent share of all chip sales to China in exchange for the relaxation.
Jensen Huang, Nvidia’s CEO, engaged in an intense lobbying campaign to secure the deal. He was also targeted by China’s Ministry of State Security in a spying plot according to the report.
