Chinese military bodies, state-run AI research institutes, and universities have managed to skirt U.S. restrictions, acquiring Nvidia semiconductors banned from export to China, as revealed by a Reuters review of tender documents. The purchases include Nvidia’s A100 and the potent H100 chips, pointing to the ongoing struggle for Washington to sever China’s access to crucial U.S. chips vital for AI breakthroughs and advanced military systems. The persistent demand for these banned chips underscores the limitations of current alternatives for Chinese firms, despite the nascent development of rival products, and highlights the significant role Nvidia plays in China’s AI landscape, commanding a 90% market share before the imposed bans.
The review found that neither Nvidia nor its authorized retailers were among the identified suppliers, raising questions about the sources of these illicit transactions. Despite inquiries, none of the purchasers or suppliers responded to requests for comment. As U.S. authorities aim to tighten export restrictions, the revelation showcases the intricate challenges faced in creating an airtight system, emphasizing the strategic intent of hindering China’s AI development by disrupting the supply of advanced chips.