China Sidesteps Nvidia Chip Ban As Military, Government Acquire Powerful H100s

The Chinese military, state-run AI research institutes, and universities have been buying banned Nvidia semiconductors in small batches. These transactions involve high-end chips like Nvidia’s A100 and H100, as well as their less advanced counterparts, the A800 and H800. Universities and entities subject to U.S. export restrictions are among the purchasers. Interestingly, these transactions do not involve Nvidia or its authorized retailers, indicating a growing underground market. The US Department of Commerce emphasizes the need for tighter export controls. However, experts believe enforcement is challenging. While China has procured over 100 tenders for Nvidia chips, the quantities are insufficient for developing large AI models. Chinese cloud companies are also shifting their semiconductor orders away from Nvidia to domestic companies.