Chinese Military, Universities Procuring Nvidia Chips Despite U.S. Ban

Despite the U.S. ban on exporting semiconductor chips to China, Chinese military entities, public universities, and research institutes have continued to procure Nvidia (NASDAQ:NVDA) chips over the past year, according to Reuters, which cited tender documents.

The Controversial Purchases

The purchased chips, including Nvidia’s (NVDA) A100, H100, A800, and H800 chips, were banned from export to China by the United States.

The buyers, as documented in the tenders, include state-run institutions such as Harbin Institute of Technology and University of Electronic Science and Technology of China, both of which are alleged to have military connections.

Additional buyers identified in the tenders encompass Tsinghua University, a laboratory operated by the Ministry of Industry and Information Technology, and an unspecified People’s Liberation Army entity.

While the bulk of the purchased chips are slated for artificial intelligence (AI) applications, their quantity thus far is insufficient to independently construct a large language model from scratch.

Nvidia’s Reaction

The suppliers mentioned in the tenders do not include Nvidia (NVDA) or any retailers authorized by the company. An Nvidia (NVDA) spokesperson emphasized the company’s commitment to taking immediate and appropriate action if it becomes aware of any unlawful resale to third parties.

Impact on National Security

The flagged sales have cast a spotlight on the challenges faced by Washington in curtailing China’s access to high-end chips capable of propelling AI development, as such access raises significant national security concerns. The U.S. government is actively working to address all pathways through which chip export controls are evaded, with plans to enforce additional restrictions as necessary.