Chinese Tech Giants Shift AI Training to Southeast Asia to Bypass US Nvidia Chip Bans
Alibaba and ByteDance are moving advanced AI model training to Southeast Asian data centers to access Nvidia chips amid US export restrictions on H20 sales, highlighting creative workarounds in the global AI race.
Chinese technology giants Alibaba and ByteDance have relocated training for their advanced large language models to data centers across Southeast Asia, circumventing U.S. export restrictions on Nvidia's high-performance chips. This strategic shift has accelerated since April 2025, when the Trump administration imposed bans on H20 chip sales to China, prompting firms to lease non-Chinese operated facilities abroad for critical AI development.
The move underscores the intense global competition for AI supremacy, where access to cutting-edge hardware like Nvidia's GPUs remains essential for training sophisticated models. Alibaba and ByteDance, creators of TikTok, are among the leaders adopting this offshore approach to maintain momentum in generative AI innovation despite geopolitical barriers. DeepSeek represents a notable exception, relying on pre-ban stockpiled Nvidia chips and domestic partnerships with Huawei for continued training within China.
This development highlights China's adaptability in navigating U.S. technology controls, leveraging regional data centers in Southeast Asia for scalable compute power. Industry observers note that such relocations not only secure hardware access but also diversify supply chains amid escalating trade tensions. Neither Alibaba, ByteDance, Nvidia, nor Huawei have commented on the reports.
As AI model sizes and training demands grow exponentially, these workarounds signal potential shifts in global AI infrastructure dynamics. Southeast Asia emerges as a key hub, benefiting from proximity, cost advantages, and neutral geopolitical positioning in the U.S.-China tech rivalry.
