Chinese Research Institutes Acquire High-End Nvidia AI Chips Despite US Export Restrictions Via Resellers

Chinese research institutes have been able to purchase high-end artificial intelligence chips from Nvidia (NASDAQ: NVDA) despite US export restrictions, according to tender documents reviewed by Reuters. These advanced chips were embedded in server products made by Super Micro Computer (SMCI) and Dell Technologies (DELL), according to tenders fulfilled between November 20 and February 28. This was after the US had widened chip export controls, although it’s unclear if the chips had been acquired prior to this.

The buyers included the Chinese Academy of Sciences, Shandong Artificial Intelligence Institute, Hubei Earthquake Administration, and a space science center. An Nvidia (NVDA) spokesperson said the tenders show that the products were exported before US restrictions and “are a negligible fraction of the products sold worldwide.”

The US has banned Nvidia (NVDA) and its partners from selling high-end chips to China, including via third parties, but the sale and purchase of these chips are not illegal in China, the report noted. The US Commerce Department said its Bureau of Industry and Security is monitoring diversions of restricted chips and potential breaches.

Super Micro (SMCI) said its products in the reported tenders were available in China prior to US export controls and represent “older generation servers not capable of the largest scale AI operations.” A Dell (DELL) spokesperson said the company “found no evidence of shipping products configured with the restricted chips.”

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