The U.S. government is closing a regulatory loophole that previously allowed certain AI chips to be exported to China via third-party jurisdictions.

The United States is enforcing stricter export controls on Nvidia, with regulators actively targeting a critical loophole in existing bans on artificial intelligence chip sales to China. Per CNBC reporting, Washington’s initial prohibition on exporting Nvidia’s leading AI processors is now being reinforced by measures designed to plug regulatory gaps. This escalation tightens semiconductor restrictions amid ongoing U.S.-China tech tensions and directly impacts global supply chain strategies focused on AI hardware loophole closure.