05:42 AM EDT, 06/01/2026 (MT Newswires) -- Nvidia ( NVDA ) could face stricter limits on advanced AI chip shipments to overseas units of Chinese companies after the US clarified that export licensing rules apply to Chinese entities worldwide, Reuters reported Monday.

The move aims to close a loophole that may have allowed overseas subsidiaries of Chinese firms to access advanced AI chips, including Nvidia's ( NVDA ) Blackwell processors, despite US export restrictions, according to the report.

Industry estimates suggest hundreds of thousands of advanced AI chips reached Chinese subsidiaries abroad over the past year, prompting US officials to reaffirm strict enforcement of export controls, Reuters added.

Nvidia ( NVDA ) did not immediately reply to MT Newswires' request for comment.

Nvidia ( NVDA ) said the guidance does not affect its current AI chip shipments, which are already subject to licensing requirements, and does not disrupt operations at data centers using the chips, the report said.

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