Concerns are being raised that neither the Commerce Department nor Nvidia are doing their due diligence when it comes to vetting Chinese firms cleared to handle the company’s H200 AI chips. According to The New York Times, New Matrix is on the list of approved firms, yet its offices are empty, “a hollow gray shell with wires dangling from the ceiling where lights should be.” In fact, the paper could find little evidence that the company exists in any meaningful way:

Only scant information can be found online about New Matrix, which was created 17 months ago. At the building that New Matrix lists as its address, a company directory does not include the firm. At the nearby property management agency for the industrial park, a receptionist and a manager both said they had no record of the company.

What little information can be found about New Matrix is concerning. Its owners have ties to a Chinese private equity firm that has been blacklisted by the US government since 2024. And according to the Times, this is not a rare lapse in oversight, but a troubling pattern of companies connected to entities with national-security-related trade restrictions being approved to purchase Nvidia chips.