Leading Chinese technology companies, including Alibaba Group and ByteDance, are reportedly training their latest artificial intelligence models outside China to gain access to advanced Nvidia chips and sidestep U.S. restrictions aimed at limiting China’s progress in high-end computing, the Financial Times reported on Thursday.

According to the report, citing two sources with direct knowledge of the matter, the tech giants are leveraging data centers in Southeast Asia to develop and train their large language models (LLMs). This approach allows them to continue work on cutting-edge AI without relying on domestic hardware that may be restricted under U.S. export controls.

The U.S. has implemented a series of measures targeting the supply of high-performance chips and related AI technology to China, citing national security concerns and the potential military applications of advanced computing. These restrictions have increasingly prompted Chinese firms to explore alternative avenues for accessing computing power abroad.