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Tech war: China acquired US-restricted Nvidia AI chips built in Super Micro, Dell and Gigabyte Technology servers, tenders show

  • Among the buyers were the Chinese Academy of Sciences, the Shandong Artificial Intelligence Institute and the Hubei Earthquake Administration
  • Server makers Super Micro, Dell and Gigabyte Technology said they complied with applicable US laws, but would investigate further

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Nvidia said systems built with its graphics processing units – chips that are in demand for artificial intelligence projects – and resold by third parties must comply with US export restrictions. Photo: Shutterstock
Mainland Chinese universities and research institutes recently obtained high-end Nvidia artificial intelligence (AI) chips through resellers, despite Washington widening a ban last year on the sale of such technology to the country.
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A Reuters review of hundreds of tender documents shows 10 Chinese entities acquired advanced Nvidia chips embedded in server products made by Super Micro Computer, Dell Technologies and Taiwan’s Gigabyte Technology after the United States government on November 17 expanded the export restrictions to subject more semiconductors and countries to licensing rules.

Specifically, the servers contained some of Nvidia’s most advanced chips, according to the previously unreported tenders fulfilled between November 20 and February 28. While the US bars Nvidia and its partners from selling advanced semiconductors to China, including via third parties, the sale and purchase of the chips are not illegal on the mainland.

The 11 sellers of the Nvidia chips were little-known Chinese retailers. Reuters could not determine whether, in fulfilling the orders, they used stockpiles acquired before the US tightened chip-export restrictions in November.

A review of hundreds of tender documents showed that 10 mainland Chinese entities acquired advanced Nvidia chips built in servers made by Super Micro Computer, Dell Technologies and Taiwan’s Gigabyte Technology. Image: Shutterstock
A review of hundreds of tender documents showed that 10 mainland Chinese entities acquired advanced Nvidia chips built in servers made by Super Micro Computer, Dell Technologies and Taiwan’s Gigabyte Technology. Image: Shutterstock

Contacted by Reuters, Nvidia said the tenders specify products that were exported and widely available before the restrictions. “They do not indicate that any of our partners violated the export control rules and are a negligible fraction of the products sold worldwide,” a company representative said.

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