Lutnick sought narrower AI-chip controls affecting Cantor clients, NYT finds

Commerce Secretary Howard Lutnick has advocated narrower restrictions on overseas data centers serving Chinese customers while his family’s financial firm worked with potentially affected businesses. A New York Times investigation published November 15 describes that overlap as the administration debates how far to restrict access to advanced American AI chips beyond China’s borders.

The Times found no evidence that Cantor Fitzgerald’s business relationships influenced Lutnick’s deliberations. The Commerce Department says he has complied with all ethics agreements.

Renting the chips without importing them

The policy dispute turns on a distinction between buying hardware and renting its computing power. U.S. restrictions bar direct sales of Nvidia’s most advanced chips to China. Chinese companies can nevertheless rent access to those processors at data centers in countries such as Malaysia, Indonesia and Thailand. The chips remain abroad while Chinese customers use them remotely.

Administration officials who favor tougher controls see that arrangement as a way around the direct-sales ban. Lutnick has resisted restrictions he argues could damage Nvidia’s overseas business or U.S. trade relations. That leaves officials divided over whether chip-export policy should also limit who can use American processors after they reach an overseas facility.

The Biden administration issued global restrictions on remote access in its final weeks. President Trump revoked them, arguing they impeded American business and innovation. His administration promised replacement rules but has struggled to reconcile competing views about their reach.

Seven countries, future shipments

According to people familiar with the discussions cited by the Times, Commerce has pushed for a scaled-back replacement. The Information first reported the proposal’s limited geographic scope. Its main boundaries would be:

• Geography: Singapore, Malaysia, Thailand, Indonesia, Brazil, South Africa and Norway. Other administration officials have sought worldwide coverage instead.
• Hardware: Only future shipments of advanced chips would fall under the controls. Data centers already equipped with American technology would be exempt.
• Permission: Companies would notify the government when Chinese customers use their facilities to train AI models, but would not automatically need a license.

Commerce has also argued for a higher computing-power threshold before the rules apply. That would put fewer Chinese companies’ activities under regulation. These are proposals under debate, not a completed change to the rules.

If you’re only restricting remote access to data centers in certain countries, then China will just rent from the data centers outside those countries.

Chris McGuire, Council on Foreign Relations senior fellow and former Biden administration official, speaking to The New York Times

Where Cantor’s clients enter the picture

One affected business is Bitdeer, the Singaporean company developing Malaysia’s A201 data center. Cantor served as a designated sales agent for Bitdeer’s stock offering of up to $1 billion this year. The relationship dates to at least 2024, when Cantor helped arrange an offering of up to $250 million.

A201 is expected to open in 2027 with hundreds of millions of dollars in advanced Nvidia servers. It plans to supply computing power to a Chinese technology company. A person familiar with the arrangement told the Times that the customer would likely be Tencent; that identification is not confirmed.

Cantor also previously provided financial services to Gorilla Technology, which is building data centers in Thailand and Indonesia. The Times described these dealings as a small portion of Cantor’s business and noted that other investment banks have similar relationships with data-center developers.

Lutnick transferred his remaining Cantor ownership to his family in October 2025; his sons now run the firm. A Commerce spokeswoman said he makes policy in the country’s best interests. She said he does not discuss department matters with his sons, nor do they discuss Cantor business with him. Cantor declined to comment, and Bitdeer did not respond.

Transferring ownership did not end every ethics obligation. Federal rules still prohibit Lutnick from using public office for his own private gain or that of friends and relatives.