The AI Daily Brief · Monday, August 10, 2026
Reports suggest Chinese AI firms are accessing restricted NVIDIA GPUs through data centers in Southeast Asia, particularly Oracle's facility in Malaysia, which is reportedly used almost exclusively by ByteDance. This circumvents US export controls, raising concerns in Washington about how these firms are obtaining cutting-edge AI hardware.
“According to Semianalysis, the Oracle data center in Malaysia was being used almost exclusively by BiteDance.”
“The export control regime only prohibits the import of advanced chips, and doesn't stop them from being installed in another country and then leased to Chinese firms.”