The United States government has initiated measures to restrict the export of Nvidia artificial intelligence chips to Chinese companies located outside of China's borders, according to multiple reports.

The move represents an expansion of existing U.S. export controls that previously focused primarily on chip sales directly to mainland China. The new restrictions would target Chinese firms operating in third countries, potentially closing what some officials viewed as a loophole in current regulations.

Nvidia, the leading manufacturer of AI chips used in machine learning and artificial intelligence applications, has been at the center of U.S.-China technology tensions. The company's advanced semiconductors are considered critical for AI development and have been subject to various export restrictions as part of broader U.S. efforts to limit China's access to cutting-edge technology.

The semiconductor industry has become a key battleground in the ongoing technology competition between the United States and China. U.S. officials have expressed concerns that advanced AI chips could be used for military applications or to enhance China's technological capabilities in ways that could threaten U.S. national security interests.

The latest restrictions come as the Biden administration continues to refine its approach to technology exports, seeking to balance national security concerns with the interests of U.S. technology companies that derive significant revenue from international sales.