Malaysia Probes Chinese Firm’s Use of Nvidia AI Chips for LLM Training

The Ministry of Investment, Trade and Industry (MITI) in Malaysia is investigating whether a Chinese company using Nvidia-powered AI chips for Large Language Model training in Malaysia has violated local laws. MITI clarified that servers with Nvidia and AI chips are not controlled under the Strategic Trade Act 2010, but Malaysia will cooperate with foreign governments on monitoring sensitive goods.

Nvidia AI Chips

Data centers in Malaysia can make commercial decisions within legal boundaries, and the industry is managed by MITI and the Ministry of Digital. Malaysia opposes illicit trade, enforces international trade regulations, and ensures compliance with global export controls. While neutral on unilateral sanctions, MITI advises companies to follow foreign export controls to avoid secondary sanctions.

“Malaysia will cooperate with any government that requires assistance in monitoring trade in sensitive goods under the export control of their respective countries,’ it said.

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