Despite the U.S. export ban, Nvidia chips have been purchased in China over the past year by organizations linked to China’s military and state-backed artificial intelligence research companies, the report said.
The U.S. government first announced export restrictions in 2022 aimed at preventing China from using AI technology for military gain. Last October, the Commerce Department expanded regulations to impose licensing requirements on Nvidia for certain chips used in data centers.
dozens…
Despite the U.S. export ban, Nvidia chips have been purchased in China over the past year by organizations linked to China’s military and state-backed artificial intelligence research companies, the report said.
The U.S. government first announced export restrictions in 2022 aimed at preventing China from using AI technology for military gain. Last October, the Commerce Department expanded regulations to impose licensing requirements on Nvidia for certain chips used in data centers.
Since the restrictions were imposed, dozens of Chinese companies have bought small quantities of banned Nvidia semiconductors, Reuters reported, citing public tender documents. The company said the deal was not facilitated by Nvidia or its suppliers, and how the chips were sourced is a mystery.
An Nvidia spokesperson told Barron’s in an email: If we discover that a customer has made illegal resale to a third party, we will take appropriate measures immediately. ”
Nvidia’s stock, which has gotten off to a strong start this year, is unlikely to see a big reaction when markets open on Tuesday, as Nvidia says it complies with export laws and its stock has largely avoided the China issue. Dew. However, the Biden administration may reconsider strict restrictions on the sector in an effort to tighten controls.
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Email Rupert Steiner at rupert.steiner@barrons.com.