China acquired recently banned Nvidia chips in Super Micro, Dell servers, tenders show

Chinese universities and research institutes have recently obtained high-end NVIDIA artificial intelligence chips through resellers, despite the US expanding a ban last year on the sale of such technology to China.

A review of hundreds of tender documents by Reuters reveals that 10 Chinese entities acquired advanced NVIDIA AI chips embedded in server products made by Super Micro Computer Inc., Dell, and Gigabyte, following the US embargo expansion on November 17.

The servers had some of NVIDIA’s most advanced AI data centre chips. This was found by studying previously unreported tenders fulfilled between November 20 and February 28. While the US prohibits NVIDIA and its partners from selling advanced chips to China, including via third parties, the sale and purchase of the chips are not illegal in China.

The 11 sellers of the chips were little-known Chinese retailers. However, it remains unclear whether they used stockpiles acquired before the US tightened chip-export restrictions in November.

NVIDIA clarified that the tendered products were exported and widely available before the restrictions. Moreover, they stated that none of its partners violated export control rules. The server makers affirmed they complied with applicable laws or would investigate further.

Furthermore, the revelation of China’s acquisition of recently banned Nvidia chips in Super Micro and Dell servers highlights the complexity of managing technology trade relations. As geopolitical tensions continue to shape the global technology landscape, regulatory authorities face challenges in enforcing trade restrictions effectively.
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