The US let Nvidia sell chips to an empty office in China

Source: The Verge · Terrence O'Brien · 2026-11-07 (NYT reporting)

Concerns are being raised that neither the Commerce Department nor Nvidia are doing their due diligence when vetting Chinese firms cleared to handle H200 AI chips. According to The New York Times, New Matrix is on the approved list, yet its offices are empty — “a hollow gray shell with wires dangling from the ceiling where lights should be.”

Little information exists online about New Matrix, created about 17 months ago. Building directories omit the firm; property managers say they have no record of it. Its owners have ties to a Chinese private equity firm blacklisted by the US since 2024. The Times describes a pattern of companies linked to restricted entities being approved to buy Nvidia chips.

Nvidia faced China sales limits under Biden; the Trump administration relaxed them after Nvidia agreed to give the government a ~15% cut of sales.