According to a news report by Reuters, Chinese entities specifically banned from accessing advanced AI technology from the U.S. due to their links to the Chinese defense industrial complex could still be accessing these technologies. Last month, one university on this restricted list bought a pair of H200 chips made by Nvidia.
The university, Northwestern Polytechnical, didn’t buy those chips directly from the U.S. tech giant Nvidia. Rather, the records reviewed by Reuters show that the chips were bought through a local company in China.
Procurement records indicate that the university bought the two chips at a total cost of $123,000. They were intended for use by the management school of the university, and the purchase was made from Shaanxi Bosuan Network Technology.
The U.S. government has placed export restrictions on exports of these chips to China, but recently relaxed those restrictions as long as a license was obtained by any party seeking to sell them in China. However, the ban still applies to specific Chinese entities that are linked to the East Asian country’s military.
Northwestern Polytechnical is one of seven universities that Beijing openly names as institutions that work with the government to advance its national security technology, so the university was included among those entities that are banned from buying advanced U.S. technology, such as the AI chips made by Nvidia.
However, Chinese businesses and universities have found numerous ways to access American technology. For example, they buy the AI chips they need from local suppliers who are allowed to sell them. This was the case with Northwestern Polytechnical. Additionally, they rent compute capacity from facilities that have Nvidia chips, and records show Northwestern Polytechnical has signed five contracts of this nature thus far this year to access compute from local companies that have Nvidia AI chips.
These revelations come at a time when a major storm is brewing around Jansen Huang, the chief executive of Nvidia, regarding his affair with a woman alleged to be a spy for the Chinese. For long, Huang has lobbied Washington to allow chip sales to China so that American technology can be the go-to option for the world.
These lobbying efforts have met resistance because the U.S. doesn’t want its rivals, especially China, to use its own technology to develop military tech that can pose risks to America, or to outcompete it in the AI race.
The affair with the alleged spy has triggered an internal investigation by Nvidia on whether proprietary company information could have been compromised. The FBI and other security agencies are also looking into the matter, as is the U.S. Congress.
Technology firms like Space Exploration Technologies Corp. (NASDAQ: SPCX) with major operations in the AI industry will be monitoring developments around AI chip sales to banned Chinese entities, Huang’s affair with an alleged Chinese spy, and how authorities respond to those issues.
About TrillionDollarClub
TrillionDollarClub (“TDC”) is a specialized communications platform with a focus on the biggest and brightest companies covered by IBN. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, TDC is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, TDC brings its clients unparalleled recognition and brand awareness.
TDC is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from TrillionDollarClub, text “Trillion” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit https://www.TrillionDollarClub.net
Please see full terms of use and disclaimers on the TrillionDollarClub website applicable to all content provided by TDC, wherever published or re-published: https://www.TrillionDollarClub.net/Disclaimer
TrillionDollarClub
Austin, TX
www.TrillionDollarClub.net
512.354.7000 Office
[email protected]
TrillionDollarClub is powered by IBN
