A US AI company is seeking a $300 million loan to purchase Nvidia chips to be used by Chinese social media giant RedNote, according to a report by Bloomberg.

The report alleges that California-based PaleBlueDot.ai, which calls itself an “AI Cloud Agent platform dedicated to connecting… AI cloud resource suppliers and customers,” has approached banks and private credit firms for the financing.

JPMorgan Chase & Co. was reportedly involved in preparing marketing materials.

In response, a spokesperson for PaleBlueDot.ai said that the report was "factually incorrect."

This financing deal has reportedly been under discussion for three months, with the chips set to be used in a Tokyo-based data center for RedNote, known domestically in China as Xiaohongshu.

RedNote gained international attention in January after a momentary ban on the use of TikTok in the US led many American users to download the app.

Fierce tech competition between the US and China has led the American government to impose longstanding export restrictions on sales of advanced chips to China. Moreover, under guidance issued by the US’ Bureau of Industry and Security in May, any Chinese AI companies using US AI chips for training or inference could be subject to law enforcement.

But in this case, little is known about the specific type of chip that PaleBlueDot.ai intends to purchase and what RedNote intends to do with the chips.

PaleBlueDot.ai’s main product is Dot, an “AI cloud agent” that helps customers plan and acquire “GPU deployment plans,” and the platform is specifically tailored to help those looking to deploy the DeepSeek-R1 model.