U.S. export restrictions on advanced semiconductors used for artificial intelligence were broadened in late May 2025, with the Commerce Department closing a loophole that had allowed Chinese companies to acquire restricted chips through overseas affiliates—targeting firms such as Huawei and SMIC and specifically Nvidia’s Blackwell processors. Responding to the tightened controls, Chinese firms have reportedly accelerated purchases through intermediaries, and two individuals were charged with smuggling. At Nvidia’s annual meeting on June 24, CEO Jensen Huang told shareholders that the company places national security above business interests and that data centers built with illegally obtained chips cannot be supported. The measures are part of an escalating U.S.-China technology rivalry, as China pours billions into domestic chip production and supercomputing, while Nvidia faces potential revenue losses yet continues to comply with federal rules.