NVIDIA GB200 “AI Servers” Allegedly Smuggled into China Despite Jensen’s Claims of Their Heavy Weight

Recent reports suggest that NVIDIA’s premium AI servers are making their way into China despite stringent U. S.export controls, indicating a persistent flow of AI chips to the region through various channels.

Over $1 Billion of NVIDIA Equipment Smuggled into China Amid U. S.Export Controls

The U. S.government has expressed significant concern regarding the transfer of American AI chips to China via questionable methods. Efforts to regulate this flow were intensified during the Trump administration, yet NVIDIA’s advanced AI equipment continues to circulate in China’s black markets. According to a report by the Financial Times, since the introduction of the export restrictions, it is estimated that AI products valued at over $1 billion have launched into Chinese markets, including prominent models like the GB200 AI servers.

Upon reviewing various sales contracts and documentation, the Financial Times identified a strong demand in Chinese AI markets for NVIDIA’s B200-powered systems. These systems are notably accessible in local marketplaces, with distributors employing trade loopholes or grey channels that remain unaddressed by the U. S.government. Regions in China, especially Anhui Province, reportedly maintain large inventories of NVIDIA AI chips, encompassing models such as the B200, H100, and H200.

Image Credits: Financial Times

Supermicro server box wrapped in plastic on a pallet, ready for shipping.

Interestingly, numerous Chinese enterprises reportedly acquire NVIDIA’s chips through distributors based in locations such as Singapore. Many of these AI systems are marketed under the Supermicro (SMCI) brand. Various Chinese retail platforms showcase these systems, with sellers conducting live demonstrations to verify the authenticity of their offerings. This scenario underscores the fact that high-end AI computing resources are readily available through such platforms, revealing that U. S.export controls have not entirely halted the movement of these chips.

NVIDIA's AI Chip Renting Services In China Are Much Cheaper Compared To The US, For As Little As $6/Hr

Additionally, vendors are offering GB200 AI systems, one of NVIDIA’s most coveted platforms worldwide. Although the Financial Times could not confirm the presence of these clusters in China, numerous sellers publicly state that Grace Blackwell systems are available. It is crucial to note that the volume of AI equipment sold remains minimal compared to the substantial AI clusters being developed globally. Nevertheless, this hardware can sufficiently support the needs of low- to mid-tier Chinese Cloud Service Providers (CSPs).

It will be intriguing to observe how the U. S.government reacts to these revelations, particularly as their “AI action”plans aim to tighten control over the flow of technology into China through any potential means.

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