Chinese AI Startup Founder Critiques US Trade Policies by Showcasing “Restricted” NVIDIA AI Accelerators and Servers

Recently, the co-founder of a Chinese AI startup has openly challenged the effectiveness of U.S. restrictions on technology transfers to Beijing. Through demonstrations featuring the “banned”NVIDIA H100 and H200 AI accelerators, this entrepreneur has raised eyebrows, questioning the resilience of these policies.

Trade Loopholes Allow Continued Access to NVIDIA’s AI Technology

The current U.S.-China trade climate has been fraught with contention, particularly as the craze surrounding artificial intelligence has escalated. In response to this rapidly shifting landscape, both countries have enacted swift regulatory measures to leverage advantages in AI technology. The United States, leveraging its technological leadership, has introduced stringent restrictions aimed at preventing the export of advanced equipment such as AI accelerators and servers to China.

🚨 Loopholes in US export control 🚨

In two videos posted on his Douyin account from 🇨🇳 Guangdong on Nov 28 and 29 respectively, cofounder of Beijing-based startup incubator Kun Lun Nest (昆伦巢) 🇨🇳 Su Di (苏菂), who previously founded incubator/cafe Garage Coffee (垃圾咖啡) in… pic.twitter.com/YGbJzjNMU5

— Byron Wan (@Byron_Wan) December 9, 2024

In these widely shared clips, Su Di, the co-founder of Kun Lun Nest—a Beijing-based startup incubator—demonstrates access to NVIDIA’s Hopper AI accelerators, despite export bans. Not only do his videos showcase these advanced models, but they also reveal his access to SuperMicro’s AI server racks, calling into question the success of U.S. restrictions. Clearly, trade loopholes are being exploited to continue acquiring cutting-edge U.S. technology.

SXM-To-PCIe Adapter Board Enables Conversion of NVIDIA's Top H100 AI GPUs

Su Di asserts that a significant number of NVIDIA’s H100 and H200 GPUs are anticipated to arrive soon, with no evident supply chain disruptions for bulk orders. Although China officially cannot import leading-edge AI equipment, it has actively sourced alternatives through countries like Malaysia and Singapore, which do maintain access to NVIDIA’s advanced technology. This practice remains entirely legal, highlighting the complexities of international trade in high-tech sectors.

The Biden administration’s strategy aimed at curbing AI advancements in China has not yielded the intended results. Instead, it has inadvertently stimulated growth within China’s domestic tech scene. As Chinese entities continue to navigate around U.S. restrictions via trade loopholes, they successfully meet their computational demands. To establish effective, broad-based control over technology transfers, much stricter measures across the entirety of the supply chain would be necessary. However, any comprehensive approach must also acknowledge China’s pivotal role in the global AI market.

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