ByteDance secures 36,000 NVIDIA B200 AI chips for Malaysian deployment through Aolani Cloud partnership

This is a real-world test of whether export controls can actually limit AI innovation—or simply shift it to new locations.

• ByteDance is acquiring 36,000 NVIDIA B200 AI chips through a Malaysian partner, Aolani Cloud, for use outside China.
• The $2.5 billion deal sidesteps U.S. export bans that block direct sales of these chips to China, by deploying them in Malaysia.
• NVIDIA and Aolani Cloud confirm compliance with all export regulations, as the chips will not be used in restricted countries.

• U.S. export controls since 2022 have blocked China from buying NVIDIA’s most powerful AI chips, aiming to slow military and strategic AI advances.
• Chinese tech giants are shifting AI infrastructure to Southeast Asia—especially Malaysia and Singapore—to keep up with global AI leaders.
• NVIDIA’s Blackwell B200 chips are top-tier hardware for training and running large AI models, making them a critical resource for any AI-driven company.

ByteDance, the parent company of TikTok, is making a $2.5 billion bet on Malaysia as its next AI powerhouse. Here’s the mechanism: U.S. export controls prohibit NVIDIA from selling its most advanced AI chips—like the Blackwell B200—directly to China. These controls are designed to limit China’s access to hardware that could accelerate its military or strategic AI capabilities. However, the rules allow sales to other countries, provided the chips don’t end up in China or other restricted territories.

Enter Aolani Cloud, a Singapore-headquartered company operating data centers in Malaysia. By partnering with Aolani, ByteDance can legally access 36,000 B200 chips—enough to power around 500 Blackwell computing systems—by running its AI workloads in Malaysia. NVIDIA reviews and approves all cloud partners and confirmed that this arrangement is within the letter of current U.S. law: the chips stay outside China, and ByteDance is just one of several customers using the Malaysian infrastructure.

This workaround is not unique to ByteDance. Other Chinese tech majors, including Alibaba, have also begun shifting AI model training to Southeast Asia, where they can rent or build infrastructure that’s out of reach of direct export bans. The result: a rapid buildout of world-class AI data centers in Malaysia and Singapore, funded by Chinese capital but technically outside Chinese jurisdiction.

For NVIDIA, this is a win: it can keep selling its most advanced chips at premium prices, even as direct sales to China are blocked. For ByteDance and its peers, the incentive is clear: maintain access to the world’s best AI hardware, even if it means moving R&D and operations abroad. For the U.S., the policy goal is to slow China’s AI progress—but the reality is that the hardware is still being used by Chinese firms, just not on Chinese soil.

Structurally, this is accelerating the emergence of Southeast Asia as a global AI infrastructure hub. Malaysia, in particular, is becoming a magnet for data center investment and high-value tech jobs. The deal also raises questions about the long-term effectiveness of export controls: as long as companies can move their operations, the controls may simply shift where innovation happens, not stop it.

Market reactions have been muted so far, but analysts are watching closely. The move highlights the growing complexity of global tech supply chains and the limits of national policy in a borderless digital economy. It’s a signal that, for now, incentives to access top-tier AI hardware are strong enough to reshape the geography of AI itself.

• AI researchers and engineers in Southeast Asia: Gain access to world-class hardware and new job opportunities as data centers expand.
• Chinese tech firms: Maintain competitive AI development by relocating workloads, but face higher operational complexity and costs.
• Global cloud service providers: See increased demand for infrastructure in “neutral” countries like Malaysia and Singapore.
• U.S. chipmakers (like NVIDIA): Continue to profit from high-end chip sales, but with more scrutiny on compliance and end-use.

• Expansion of Southeast Asian data centers: Growth in Malaysia and Singapore signals where the next wave of AI innovation will be physically located.
• Regulatory responses from the U.S. and allies: Any tightening of export controls or new rules on “end-use” could reshape these workarounds.
• AI model breakthroughs from overseas labs: Watch for major AI advancements or product launches linked to infrastructure outside China.