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Lutnick Pushed to Weaken Chip Rules That Overlap With His Family Business
A data centre in Malaysia plans to use hundreds of millions of dollars’ worth of advanced Nvidia chips to provide computing power to a Chinese technology company, a legal route around US restrictions on direct chip sales to China. Commerce Secretary Howard Lutnick is shaping rules that could restrict such arrangements, but has reportedly pushed for looser controls, drawing scrutiny because his former firm has financial ties to the data centre’s operator.
The operator, Singapore-based Bitdeer, was a Cantor Fitzgerald client; the firm acted as a sales agent for a share offering of up to $1 billion this year and had helped arrange an offering of up to $250 million in 2024. Lutnick led Cantor for decades before entering government and recused himself from its business; the Commerce Department says he has met his ethics obligations. The article says there is no evidence Cantor’s ties influenced his deliberations, and notes the dealings are a small part of the firm’s business.
In short
- A Malaysian data centre plans to serve a Chinese tech company with Nvidia chips.
- Lutnick is advocating less stringent controls on overseas data centres.
- His former firm has financial ties to the centre’s operator.
Explained simply
The United States restricts exports of its most advanced computer chips to China, citing concerns about their potential military use. Some Chinese technology companies can still access computing power by renting it from data centres in other countries, where the chips are installed.
Howard Lutnick, the US commerce secretary, helps shape rules governing such exports and overseas access. Bitdeer, a Singapore-based company planning to host Nvidia chips in Malaysia, previously had business dealings with Cantor Fitzgerald, the financial firm Lutnick led before joining government.
The reported overlap has drawn scrutiny because the rules could affect arrangements involving Bitdeer. The article says there is no evidence Cantor’s ties influenced Lutnick’s decisions; the Commerce Department says he has met his ethics obligations.