Nvidia AI chips smuggled into China after Trump restrictions: Report

Nvidia He said on Thursday that data centers built with illegal chips were “a lost offer” and did not support unauthorized products.

Expression, Financial times Report that artificial intelligence chips are illegally entering China.

“Trying to bring data centers together from use products is a proposal that has been lost both technically and economically,” a spokesman said in a statement to CNBC. He said. “Data centers need only the service and support we offer to authorized NVIDIA products.”

According to the FT report, President Donald Trump entered China at least $ 1 billion of the company’s chips, offering restrictions on the company’s H20 chips to the world’s second largest economy.

Financial Times referring to sales contracts, company applications and people who are familiar with agreements, Nvidia’s B200 chips, which are forbidden to be sold to China, have become popular in the black market despite restrictions.

In the report, Chinese distributors began to sell chips in May.

The US and China competed for years to lead the artificial intelligence race. China serves as a major market for chipsets, but the US has restricted many advanced processors sales due to national security concerns.

Last week, Nvidia CEO Jensen Huang said that after a breakthrough on Trump regulations, he would continue to sell H20 chips to China.

In April, when the US government said it would require a license to the company, China effectively blocked sales. The chip was created to work around previous export controls in China.

Nvidia CEO Jensen Huang said he wanted to sell more advanced chips than China than the H20.

WRISTWATCH: What does Nvidia H20s mean to China’s AI ambitions?