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China Bypasses U.S. A.I. Bans Using Smugglers and Front Companies to Acquire Nvidia Chips for Military

Aug 4, 2024, 02:19 PM

China is reportedly bypassing American bans on artificial intelligence (A.I.) technology through the use of smugglers and front companies. According to an investigation by The New York Times, vendors in Shenzhen are selling restricted A.I. chips, including those made by Nvidia, despite U.S. efforts to block their access. The chips are being smuggled via Hong Kong and other routes to fuel China's A.I. ambitions, which include advancements in military and defense technology. The U.S. fears that these chips could help China develop superior weaponry and launch cyberattacks. The investigation involved interviews with 11 companies in China that confirmed the sale or transportation of these banned Nvidia chips. The private sector is also reportedly fighting back against these bans.