News

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.

Solomon Thompson

Disqus Comments Loading...

Recent Posts

Trust Gaming GXT 609 Zoxa 2.0 PC Speakers

SOUNDS GREAT – Full stereo sound (12W peak power) gives your setup a booming audio…

2 hours ago

PowerA Wired Controller for Nintendo Switch

Special Edition Yoshi design Ergonomic controller shape with Nintendo Switch button layout Detachable 10ft (3m)…

2 hours ago

Logitech G Saitek PRO Flight Rudder Pedals

Fluid Motion: These flight rudder pedals are smooth and accurate that enable precise control over…

2 hours ago

Logitech G Saitek Farm Sim Controller

Heavy Equipment Bundle: Includes a steering wheel for heavy machinery, gas and brake pedals, and…

2 hours ago

Razer Ornata V3 X – Low Profile Gaming Keyboard

Low-profile Keys for an ergonomic gaming experience. With slimmer keycaps and shorter switches, enjoy natural…

2 hours ago

Glorious Gaming Model O Wired Gaming Mouse

Size & style: Ambidextrous lightweight mouse for gaming. Built for speed, control and comfort, with…

2 hours ago