Nvidia has reportedly told its data center and cloud partners worldwide that Chinese customers should make up no more than 49% of their business under new contracts — a move that would close the offshore-rental loophole Chinese AI firms have used to reach top-end Nvidia chips. Why it matters: export controls are shifting from where chips ship to who ends up using them.
November 4, 2026 — The Financial Times reported the guidance on Tuesday, November 3, citing five people familiar with the matter.
What was reported
Under the guidance, cloud providers building on Nvidia hardware must sell at least 51% of their services under future contracts to companies that are not Chinese, capping the Chinese share at 49%. The instruction reportedly applies to partners worldwide, covers new agreements only, and leaves existing rental contracts untouched. According to the reports, Nvidia passed the message verbally through its sales and regional teams over the past several months rather than putting it in writing.
The target is a known workaround: US rules restrict direct sales of advanced GPUs to China, but Chinese firms including Alibaba and ByteDance have rented Nvidia-powered capacity in data centers in places such as Singapore and Malaysia, owned by non-Chinese companies, without any hardware crossing a border.
What is not confirmed
Nvidia neither confirmed nor denied the report when AFP asked. Reuters carried the FT’s account but said it could not independently verify the details. A separate report by The Information, citing three sources, said the guidance is not currently mandatory or strictly enforced. China’s Foreign Ministry spokeswoman Mao Ning said she was not aware of the report. So the 49% figure is a reported threshold, not a published Nvidia policy — and whether it hardens into contract terms is the open question.
The wider crackdown
The reported guidance fits a pattern. The US Commerce Department issued related guidance in May covering products including Blackwell chips, and Nvidia reportedly cut its list of approved Asian customers by more than half in July, adding data-center visits, contract reviews, and end-user interviews to its vetting. Some providers in Singapore have reportedly warned that finding enough non-Chinese customers will be difficult if the rule is enforced strictly.
Why it matters
If Nvidia enforces a customer-mix rule, “rent the chips abroad” stops being a reliable planning assumption for Chinese AI labs — and a compliance headache lands on every cloud operator that serves Asia. It also signals where controls are heading: from the chip, to the contract, to the end customer. For now, file this as credible reporting — five sources, a consistent story across outlets — but not settled policy until Nvidia puts its name to it.
Frequently asked questions
What exactly is Nvidia reportedly asking partners to do?
Keep Chinese customers at or below 49% of services under new contracts — equivalently, sell at least 51% to non-Chinese companies — according to the Financial Times.
Has Nvidia confirmed the 49% cap?
No. Nvidia neither confirmed nor denied it, Reuters could not independently verify the FT’s account, and The Information reports the guidance is not currently mandatory.
Does the cap affect existing contracts?
Reportedly not. The guidance is said to apply to future contracts only, leaving existing computing-rental agreements unchanged.
Sources: Financial Times via Reuters and AFP, The Information, Malay Mail