Recent reports have revealed that Chinese universities and research institutes have managed to acquire high-end Nvidia artificial intelligence (AI) chips through resellers, despite the United States expanding a ban on such technology sales to China.
According to a review of multiple tender documents, it was found that ten Chinese entities were able to obtain advanced Nvidia chips that were integrated into server products manufactured by Super Micro Computer, Dell Technologies, and Gigabyte Technology of Taiwan. These acquisitions took place after the US implemented an embargo in November 2023 that extended licensing rules to cover more chips and countries.
The servers in question contained some of Nvidia’s most sophisticated chips, as per the tenders completed between November 20 and February 28. While the US prohibits Nvidia and its partners from selling such advanced chips to China, whether directly or through third parties, the sale and purchase of these chips are not considered illegal in China.
The chips were sold to Chinese buyers by eleven relatively unknown retailers in the country. It remains uncertain whether these retailers used stockpiles acquired prior to the tightened restrictions in November.
Nvidia responded to these findings by stating that the products specified in the tenders were exported and commonly available before the restrictions were put in place. They emphasized that none of their partners had violated export control rules, and the products in question represented only a minute fraction of their global sales.
The server manufacturers mentioned in the tenders asserted that they had adhered to applicable laws and would look into the matter further if necessary.
The buyers of the Nvidia chips included prominent institutions like the Chinese Academy of Sciences, the Shandong Artificial Intelligence Institute, Hubei Earthquake Administration, as well as several universities and state-run research centers.
Legal experts highlighted the possibility of chips getting diverted to China without the manufacturer’s knowledge due to the complex supply chains. The US Commerce Department stated that they monitored the diversion of restricted chips and had the authority to investigate any potential violations.
Nvidia emphasized that any systems built with their GPUs and resold by third parties must comply with US export restrictions, and they would take appropriate action if any products were found to be resold in violation of these rules.
