Chinese Companies Are Still Accessing Nvidia Chips
Chinese companies are accessing Nvidia’s advanced AI chips through Google and Microsoft’s data centers, skirting the US semiconductor export restrictions.
The Information reported that these data centers are equipped with the latest chips needed for AI development and are outside Chinese and American soils.
If You Can’t Beat Them, Limit Them
Throughout his presidency, President Joe Biden and his administration have tightened the reins on exports to Chinese companies, including chips and AI-related technologies. They wanted to prevent Chinese entities, specifically China’s military, from utilizing US technology for AI purposes, citing national security concerns. As a result, they placed restrictions on advanced semiconductor exports to China.
Allowed, on a Technicality
To circumvent the restrictions, Chinese companies have been renting servers that are equipped with Nvidia chips from international data centers operated by Google, Microsoft, and other global firms.
It’s mostly Microsoft Azure and Google Cloud, as they provide server rental services, featuring Nvidia’s powerful A100 and H100 chips, to Chinese clients. So, Chinese AI startups and tech companies utilize these high-performance processors without breaching US export laws. Sources within Microsoft and Google have confirmed these arrangements, emphasizing their compliance with current US regulations.
According to The Information, numerous smaller cloud service providers also offer servers powered by Nvidia’s chips to Chinese companies. These providers are distributed globally, including in the US, Europe, and Asia, further complicating the enforcement of US export controls.
It’s Not Just Chips
Much to the Chinese government’s dismay, its companies have also found a workaround for the use of ChatGPT, which it had banned. Chinese developers are still accessing ChatGPT and its related models through Microsoft’s Azure cloud service, which operates in China via a local joint venture with 21Vianet.
Even More Measures
The Biden administration has proposed additional measures to monitor foreign access to US data centers. Last January, Gina Raimondo, the Secretary of Commerce, proposed a “Know Your Customer” requirement where cloud computing companies verify whether foreign entities are utilizing their services to train AI models.
Final Thoughts
As the AI sector continues to expand, the US attempts at preserving its national safety from China grow steadily more complex with regulations, corporate strategies, and international collaborations.
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