China Obtains Top-Secret Nvidia Chips

London: 23 April 2024 (TraderMade): The US export ban on high-tech chips to China just hit a major snag! In a move that could reignite tensions between the two superpowers, a Reuters investigation reveals China has successfully acquired advanced Nvidia artificial intelligence (AI) chips, defying US restrictions.

How Did They Do It? A Clever Maneuver Through Resellers

While the US banned Nvidia from directly selling its most powerful AI chips to China, it appears China outsmarted the system. According to a review of hundreds of tender documents, Chinese universities and research institutes managed to obtain these coveted chips through resellers.

These resellers included major tech companies like Super Micro, Dell, and Taiwan's Gigabyte Technology. The chips were embedded within server products, essentially bypassing the direct sale restriction.

Uncertain Implications: Arms Race or Business as Usual?

The full impact of this development remains to be seen. While the US intended to limit China's access to this technology for national security reasons, the ability to acquire it through third parties raises questions about the effectiveness of the ban.

It could also escalate tensions between the US and China, potentially leading to further restrictions and retaliation. Investors are watching closely, as this incident could disrupt the global semiconductor supply chain and impact technology companies on both sides of the Pacific.