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China Acquires Banned Nvidia Chips Despite US Restrictions

Chinese entities obtained advanced AI chips through resellers, bypassing tightened U.S. export controls.

Massive demand for artificial intelligence chips in China has created a growing market for smuggled graphics processing units, especially those made by Nvidia. Photo: Shutterstock
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Overview

  • Mainland Chinese universities and research institutes recently acquired high-end Nvidia AI chips through resellers, despite a U.S. ban on the sale of such technology.
  • The chips were embedded in servers from Super Micro, Dell, and Gigabyte, with transactions revealed through tender documents.
  • Nvidia and server manufacturers claim compliance with export laws, stating the chips were exported before the restrictions were implemented.
  • The U.S. Commerce Department is monitoring the situation for any potential violations of export controls.
  • The access to these chips could potentially enhance China's capabilities in AI for military applications.