Chinese institutions have found a way to bypass U.S. restrictions and secure advanced Nvidia chips for AI research and development. Despite the expanded export embargo imposed by the U.S., several educational and research entities in China managed to acquire these high-tech chips through Super Micro, Dell, and Gigabyte servers.
A recent analysis of tender documents revealed that ten Chinese organizations successfully obtained Nvidia chips that are embedded in servers manufactured by these companies after the U.S. tightened its chip-export regulations last November. These servers contained some of the most powerful CPUs produced by Nvidia, a renowned American tech company.
Although the U.S. prohibits the direct export of advanced semiconductors to China, including via third-party suppliers, the sale and purchase of these chips within China itself are not illegal. The chips were reportedly procured from unidentified Chinese retailers, raising questions about the origin of these products and whether they were part of inventory acquired before the stricter regulations were imposed.
Nvidia responded to these findings by stating that the products specified in the tenders were shipped and publicly available before the restrictions were put in place. The company emphasized that these transactions represent only a small fraction of their global sales and argued that none of their partners violated the export control rules.
Meanwhile, the server manufacturers involved in these transactions stated that they are committed to complying with relevant laws and regulations. They assured that they would further investigate the matter to ensure adherence to export guidelines.
The buyers of these advanced Nvidia chips included prestigious institutions such as the Chinese Academy of Sciences, the Shandong Artificial Intelligence Institute, and several universities across different regions in China. While these entities remained silent in response to inquiries, legal experts suggest that the chips might have been moved to China without Nvidia’s knowledge due to gaps in supply chain oversight.
In light of these developments, the U.S. Commerce Department confirmed that they are closely monitoring restricted chip diversions and investigating any potential violations of export controls. Both Nvidia and the server manufacturers reiterated their commitment to ensuring compliance with U.S. regulations regarding the export of advanced semiconductor technology.
As the investigation continues, it remains to be seen whether these actions will have any repercussions for the entities involved in bypassing the U.S. export restrictions to acquire Nvidia chips for AI research and development in China.
