Despite multiple embargoes and trade sanctions imposed by the United States, Chinese military bodies, state-affiliated AI research institutes, and universities have managed to acquire thousands of restricted NVIDIA GPUs, according to an analysis of tender documents conducted by Reuters. These purchases include NVIDIA’s A100, H100, A800, and H800 chips, all of which have been impacted by the US export bans implemented in recent years.
The tender documents reveal that Chinese entities, including renowned universities such as the Harbin Institute of Technology and the University of Electronic Science and Technology of China, have procured small quantities of NVIDIA semiconductors that are banned for export to China. These purchases have highlighted the challenges faced by the US in completely severing China’s access to advanced US chips critical for AI development and military applications.
The demand for NVIDIA chips remains high in China due to their superior performance in AI work and efficient processing of large amounts of data necessary for machine learning tasks. Despite emerging rival products from companies like Huawei, there are currently no viable alternatives for Chinese firms. Prior to the export bans, NVIDIA held a dominant 90 percent share in China’s AI chip market.
Interestingly, an underground market has emerged in China for these banned chips following the US restrictions. Chinese vendors claim to acquire excess stock that enters the market after NVIDIA supplies large quantities to major US companies or through imports facilitated by locally incorporated companies in places like India, Taiwan, and Singapore.
While NVIDIA claims to comply with all applicable export control laws, the company has warned that appropriate action will be taken against customers found to have unlawfully resold chips to third parties. The US Department of Commerce has not commented on the situation.
Experts, including Chris Miller from Tufts University, have acknowledged the challenges in creating foolproof export restrictions for small-sized chips, given the potential for smuggling. The primary objective of the US export bans appears to be disrupting China’s AI development by impeding the construction of large clusters of advanced chips capable of training AI systems.
The tender documents reviewed by Reuters indicate that the quantities of NVIDIA chips procured for AI applications in China are generally small but still demonstrate the continued demand for these advanced semiconductors. This raises questions about the effectiveness of US efforts to restrict access to NVIDIA chips in China.
The source of the article is from the blog shakirabrasil.info