U.S. AI Chip Export Controls Shift as ByteDance Expands Access to Nvidia GPUs in Malaysia
The U.S. Commerce Department withdrew an early draft AI hardware export rule that would have tied access to advanced American accelerators to foreign investment in U.S. AI infrastructure, while officials said a broader replacement framework is still being developed. The abandoned proposal reportedly envisioned a tiered licensing model based on computing scale, with expedited approval for smaller shipments and tighter conditions for large AI cluster deployments, underscoring that Washington is still recalibrating how it will control the global distribution of high-end AI compute.
At the same time, ByteDance is moving ahead with access to a 36,000-GPU Nvidia Blackwell cluster in Malaysia through cloud operator Aolani Cloud, in a deal Nvidia said complies with current U.S. export controls. The planned deployment, reportedly worth about $2.5 billion and built from 500 NVL72 GB200 systems, highlights how Chinese firms may still obtain substantial overseas AI compute capacity through third-country infrastructure even as direct chip access remains restricted. A separate analysis of Huawei’s HarmonyOS and China’s broader AI ecosystem is not about this specific export-control development and should be excluded.
Timeline
Mar 14, 2026
U.S. Commerce Department withdraws draft AI export rule
The U.S. Commerce Department withdrew the controversial draft export rule for American AI accelerators that would have imposed conditions on foreign operators of large AI clusters, including possible mandatory investment in U.S. AI infrastructure. Its removal indicated the administration was still developing a new export-control framework.
Mar 13, 2026
ByteDance plans 36,000 Blackwell GPU cluster in Malaysia
ByteDance was reported to be planning access to a 36,000 Nvidia B200 Blackwell GPU cluster in Malaysia through Aolani Cloud, with hardware supplied via Aivres and valued at about $2.5 billion. Nvidia said it had no objection and that such cloud deployments outside controlled countries comply with current U.S. export controls.
Feb 1, 2026
Draft U.S. AI accelerator export rule appears on OIRA website
An early draft U.S. export rule for AI hardware appeared on the Office of Information and Regulatory Affairs website in late February under the 'AI Action Plan Implementation' initiative. The proposal outlined a tiered licensing regime and stricter conditions for very large foreign AI clusters.
Feb 1, 2025
Aolani begins leasing H100 AI servers in Malaysia to ByteDance
Malaysia-based Aolani Cloud reportedly started leasing Nvidia H100-based AI servers in Malaysia to ByteDance, establishing an ongoing relationship for AI infrastructure outside China.
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U.S. Revises Export Controls to Allow Limited Sales of Nvidia H200 and AMD MI325X AI GPUs to China
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3 weeks ago