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KUALA LUMPUR: Malaysia’s trade ministry is verifying media reports that a Chinese company in the country is using servers equipped with Nvidia and artificial intelligence chips for large language models training, it said on Wednesday.
The ministry “is still in the process of verifying the matter with relevant agencies if any domestic law or regulation has been breached,” it said in a statement.
The Wall Street Journal had earlier reported that Chinese engineers had flown into Malaysia in early March carrying suitcases filled with hard drives.
It said they sought to build AI models in Malaysian data centers containing servers using Nvidia chips.
The Biden administration had put in place curbs on the export of sophisticated AI chips. Malaysia was in a second tier of countries subject to restrictions, with caps on the number of chips that it could receive.
The Trump administration has since scrapped the curbs, but it has issued guidance reminding US companies that if they have knowledge that an AI chip used in Chinese AI model training will be used for a weapon of mass destruction then a license may be required.

WASHINGTON: The State Department has begun evacuating nonessential diplomats and their families from the US embassy in Israel as hostilities between Israel and Iran intensify and President Donald Trump warns of the possibility of getting directly involved in the conflict.
A government plane evacuated a number of diplomats and family members who had asked to leave the country Wednesday, two US officials said. That came shortly before US Ambassador to Israel Mike Huckabee announced on X that the embassy was making plans for evacuation flights and ships for private American citizens.
The officials spoke on condition of anonymity to describe sensitive diplomatic movements.
“Given the ongoing situation and as part of the embassy’s authorized departure status, mission personnel have begun departing Israel through a variety of means,” the State Department said.
“Authorized departure” means that nonessential staff and the families of all personnel are eligible to leave at government expense.
There was no indication of how many diplomats and family members departed on the flight or how many may have left by land routes to Jordan or Egypt.
The evacuations, comments from the White House and shifting of American military aircraft and warships into and around the Middle East have heightened the possibility of deepening US involvement in a conflict that threatens to spill into a wider regional war.
Trump has issued increasingly pointed warnings about the US joining Israel in striking at Iran’s nuclear program, saying Wednesday that he doesn’t want to carry out a US strike on the Islamic Republic but suggesting he is ready to act if it’s necessary.
The State Department also has steadily ramped up its warnings to American citizens in Israel and throughout the region, including in Iraq.
Last week, ahead of Israel’s first strikes on Iran, the department and the Pentagon put out notices announcing that the US embassy in Baghdad had ordered all nonessential personnel to leave and that the Defense Department had “authorized the voluntary departure of military dependents from locations across the Middle East.
Those warnings have increased as the conflict has intensified, with the embassy in Jerusalem authorizing the departure of nonessential staff and families over the weekend and ordering remaining personnel to shelter in place until further notice.
The embassy has been closed since Monday and will remain shut through Friday.