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Lutnick Pushed to Weaken Chip Rules That Overlap With His Family Business
The New York Times • • nation
Key Points:
- A new data center called A201 is set to open in Malaysia next year, equipped with advanced Nvidia AI servers intended to provide computing power to a Chinese tech company.
- This arrangement legally bypasses U.S. restrictions that prohibit the direct sale of cutting-edge AI chips to Chinese firms by situating the data center outside China.
- The data center operator is a client of Cantor Fitzgerald, a financial firm formerly led by Howard Lutnick, who is now the U.S. commerce secretary responsible for shaping rules that impact such data centers.
- Lutnick has been perceived as moderating stricter regulations that would limit Nvidia chip sales to international data centers serving Chinese clients, advocating for less stringent controls despite criticism from lawmakers and other officials.
- The U.S. government remains divided between officials wanting to restrict chip sales to prevent China from circumventing bans and those, like Lutnick, who emphasize maintaining U.S. companies' access to Asian markets.
