Despite increased restrictions in the US on exporting advanced Nvidia AI chips to China, ten Chinese entities linked to the government have successfully obtained these chips integrated into server products from notable suppliers like Super Micro Computer Inc., Dell Technologies Inc., and Gigabyte Technology.
According to information examined by Reuters, these acquisitions occurred between November 20 and February 28, subsequent to the US extending export constraints on Nvidia's AI technology to limit Chinese access to sophisticated chip manufacturing technology.
Chinese Entities Acquiring Nvidia AI Chips
The purchasers include esteemed organizations such as the Chinese Academy of Sciences, Shandong Artificial Intelligence Institute, and the Hubei Earthquake Administration, along with universities, a technology investment firm owned by a provincial government, a state-owned aviation research center, and a space science center.
Concerns and Investigations
These transactions were facilitated through 11 lesser-known Chinese retailers, raising concerns about whether they accessed stockpiles acquired before the US tightened export regulations. Nvidia has clarified that the specified products were exported and available prior to the imposition of restrictions, asserting that the acquisitions do not breach export control regulations. However, experts suggest that chips might have been diverted to China without the manufacturers' awareness due to limited visibility into downstream supply chains.
US Commerce Department Monitoring
The US Commerce Department is reportedly monitoring potential diversions of restricted chips and investigating any breaches. Breaching US export controls can lead to severe penalties, including fines and imprisonment.
Military Implications and Future Scrutiny
These acquisitions grant China access to advanced chips that could enhance military applications, including defense force modernization and hypersonic missile development. While the quantities obtained were limited, these chips could significantly aid in model training and advanced research. The repercussions of these developments may involve increased government oversight of Nvidia and other tech suppliers to China. Moreover, it underscores the ongoing endeavors by Chinese tech giants to enhance their AI capabilities and move towards locally produced silicon, though the comparison with Nvidia's capabilities remains uncertain.
