The U.S. banned Nvidia's best chips from going to China. Now it's trying to close a crucial loophole
Chinese AI firms have reportedly accessed advanced Nvidia computing power overseas, testing U.S. export controls. Lawmakers weigh closing the cloud-access gap.
Nvidia's highly advanced H200 AI chips have recently been permitted to enter mainland China, according to the Financial Times. Two unnamed sources confirmed this to the FT, indicating that tech giants ByteDance and Tencent have each acquired approximately 10,000 of these processors. Other Chinese technology companies may soon receive similar shipments, the report suggested.
The US has granted ByteDance and Tencent permission to acquire up to 100,000 H200 chips each. However, Beijing is keen on ensuring that these powerful processors remain outside mainland China. This move aims to bolster the growth of local chipmakers.
Chinese authorities have instructed companies to ship the H200 chips to Hong Kong, a region that operates independently of mainland China's customs regulations. Once in Hong Kong, the processors can be utilized for various purposes.
Reuters was unable to independently verify the FT's report, and Nvidia has not yet commented on the matter. Earlier this month, a high-ranking US official informed Congress about a limited shipment of H200 chips to China. However, Reuters was unable to confirm this claim. Nvidia did not issue a response to Reuters' inquiry.
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