A Reuters review discovered that Chinese military entities, as well as state-owned AI research institutes and universities, have purchased Nvidia semiconductors through lesser-known supply companies despite U.S. export controls. Washington has tried to limit China’s AI research by cutting off the sale of U.S. chips to China. Chinese entities have purchased Nvidia’s A100, H100, A800, and H800 chips in recent months, skirting U.S. bans on the sale of these chips to China and Hong Kong in September 2022 and October 2023. These chips are highly valuable as they are uniquely capable of processing the massive amount of data required for machine-learning projects. Nvidia previously commanded 90% of China’s AI chip market, and since their mandated departure from the market, Huawei and other competitor companies have not produced an equally competent product. Many of the transactions examined in the Reuters review involved Chinese universities.
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