Tencent Taps Nvidia Blackwell AI Chips Through Japan Cloud Deal Despite Trump Warning They Won't Be Available To 'Other People:' Report

Tencent Holdings (OTC:TCEHY) has reportedly gained access to Nvidia Corp.'s (NASDAQ:NVDA) most powerful Blackwell AI chips by renting computing capacity at overseas data centers, highlighting how Chinese tech giants are navigating U.S. export restrictions.

Tencent Uses Overseas Cloud Strategy To Access Nvidia Blackwell Chips

Tencent is accessing Nvidia's most advanced Blackwell AI processors through a cloud computing arrangement in Japan, even as U.S. policy restricts the sale of such chips to China, the Financial Times reported, citing people familiar with the matter.

The chips are housed in an Osaka-area data center operated by Datasection Inc. (OTC:DSCNF), a Japanese company that pivoted last year from marketing services into AI infrastructure.

Datasection owns the Nvidia Blackwell B200 processors and rents computing capacity to a single major customer, identified by sources as Tencent, through a third-party structure, the report noted.

Because the chips are located outside China, the arrangement is considered legal, though it sits at the center of ongoing geopolitical tensions over AI technology and U.S. export controls.

Nvidia, Tencent and Datasection did not immediately respond to Benzinga’s request for comments.

See Also: Michael Burry Asks For Photos Of Warehoused Nvidia GPUs After Analyst Questions Jensen Huang’s Blackwell Shipment Numbers

Datasection's Rapid Rise As An Asian Neocloud

Datasection has emerged as one of Asia's largest neoclouds, which are companies that focus on renting Nvidia GPUs to major technology firms.

The company has secured more than $1.2 billion in contracts, tied largely to one customer, according to the report, which covers a significant portion of its initial 15,000 Blackwell chips.

Most of Datasection's first batch of chips is reportedly contracted to Tencent for three years, with optional extensions, the report added.

US Export Curbs Push Chinese AI Training Abroad

U.S. restrictions have limited China's access to Nvidia's most powerful AI hardware, pushing companies such as Tencent, Alibaba Group (NYSE:BABA) and ByteDance to train AI models overseas and rent computing power instead of buying chips outright.

Joe Biden-era rules aimed at closing this loophole were later scrapped by President Donald Trump in May. In November 2025, Trump said that the advanced Blackwell AI chip would not be accessible to "other people."

Earlier this month, Trump decided to allow Nvidia to sell its H200 AI chip to China.

Expansion Plans, Investor Scrutiny

Datasection plans to build AI data centers with more than 100,000 Nvidia processors across Japan, Australia and potentially Europe.

Its shares are up sharply this year but have fallen from recent highs amid concerns over heavy capital spending and a short-seller attack questioning regulatory compliance, the report said.

Tencent told the publication that it fully complies with all applicable laws and that its use of cloud computing services is "transparent and legal."

Trump Administration Reviews Nvidia H200 AI Chip Exports

Last week, the Trump administration initiated a formal review that could clear the path for the first shipments of Nvidia's H200 AI chips to China.

The U.S. Commerce Department has sent license applications for H200 exports to the State, Energy, and Defense Departments, which have 30 days to provide input under export‑control rules, with the final decision resting with the president.

However, previously, it was reported ​​that Beijing is preparing to limit access to Nvidia's advanced H200 chips. Chinese regulators are reportedly considering restrictions that would require prospective buyers to obtain approval before purchasing the chips.

Nvidia's stock has climbed 24.41% in the last 6 months, and over the past five years, it has surged 1,263.70%, according to Benzinga Pro. Benzinga Edge Rankings rank Nvidia in the 97th percentile for growth, with additional metrics available comparing its performance to peers such as AMD and Intel.

Read Next:

• Nvidia CEO Jensen Huang Warns China Could Beat America In AI: ‘They Can Build A Hospital In A Weekend' While US Takes Years

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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