Chinese Firms Bypass U.S. Export Controls to Access Nvidia AI Chips

Chinese companies are circumventing U.S. export controls to access Nvidia‘s high-end AI chips, despite efforts by the Biden administration to restrict their availability. According to Wall Street Journal, Chinese engineers are utilizing decentralized GPU rental services and global brokers to access Nvidia’s powerful H100 AI chips without physically importing them into the country. This loophole allows them to continue developing advanced AI technologies, bypassing restrictions designed to slow down China’s AI progress.

Decentralized GPU Rentals Offer China a Backdoor to Advanced AI Technology

Chinese engineers, rather than purchasing these expensive AI chips, are increasingly opting for rental services. These services, facilitated by brokers, allow firms to rent Nvidia-powered servers located in countries like Australia. One such broker, Derek Aw, has reportedly set up over 300 servers in Brisbane, which are being used by Beijing-based AI companies. Aw’s business model relies on cryptocurrency transactions to maintain anonymity and avoid U.S. trade restrictions.

Despite Nvidia’s attempts to comply with U.S. export controls by designing restricted versions of its AI chips, Chinese firms continue to find ways around these limitations. The growing trend of GPU decentralization is providing them with the computing power needed to stay competitive in the AI industry. Lawyers note that current U.S. trade restrictions do not apply to accessing U.S. cloud services, but this could change as the Biden administration considers tightening controls further.