Our INVESTIGATION Indicates Japanese Firm Datasection (TYO: 3905) Is Illegally Providing NIVIDA GPUs to BLACKLISTED Chinese Firm Tencent

We believe Tencent is the mystery “large cloud service provider” putting $272 million behind Datasection’s planned supercluster of restricted NVIDIA B200 GPUs in Japan. Providing cutting-edge GPUs to China-owned firms is severely restricted and violates US export controls and betrays Japan’s national security interests as well. Tencent’s blacklisting by the United States because of its ties to the Chinese military make this potentially an explosive international scandal. We have heard that Datasection’s CEO Norihiko Ishahara is trying to get government subsidies and funding, which is why we have already notified authorities in Japan and in the US of what appears to be grossly illegal practices and expect a swift response.

We learned from multiple sources that it is well-known in the industry that Datasection’s mystery sole datacenter customer is China-based. We learned that as Datasection has sought out financing, they have been quietly revealing to interested parties that Tencent is the mystery customer behind their initial order of 5,000 GPUs in July and a second order of 10,000 GPUs in October. We have heard that Japanese banks have proverbially slammed the door in CEO, Norihiko Ishihara’s face, apparently recognizing the scheme’s blatant illegality. The CEO crawled back to a Singaporean firm with ties to China for financing.

A former employee of Datasection revealed to us that the CEO initially hid the identity of the mystery backer, even from his own staff. This former employee believed that the CEO used NowNaw Japan (NNJ) to mask Chinese funding. They also pointed out that NNJ is closely tied to China and to Tencent in particular, and that one of its entities is in Tencent’s office in China. Datasection denies that NNJ is a related party, but we think this is false since Norihiko Ishihara was an original director and promoter for NNJ.