Export-banned Nvidia chips are behind China's most powerful AI models—uh oh, Jensen!
New research shows the most advanced AI models from China were trained on banned Nvidia chips.
TL;DR
- A new research effort claims that leading open-weight AI models from Chinese companies were trained on Nvidia chips restricted from export to China.
- Nvidia CEO Jensen Huang is leaving the company amidst allegations of an affair with Alice Huang, an executive at Megaspeed, a company implicated in smuggling Nvidia chips into China.
- US export controls aim to protect AI leadership, but Blackwell GPUs are banned from export to China, with less powerful chips subject to specific shipping routes and tariffs.
- Research indicates that advanced AI models from DeepSeek, Moonshot AI, MiniMax, and Ant Group show "fingerprints" of training on Blackwell chips.
- Chinese firms are reportedly using offshore data centers, particularly in Malaysia, to access advanced AI chips, circumventing direct export bans.
- Megaspeed, led by Alice Huang, is alleged to be central to the trade of these chips, facing investigations from US and Singaporean governments.
- Short-seller Culper has highlighted Nvidia's "China problem," driven by Chinese demand and potential violations of US law, with a significant portion of Nvidia's revenue coming from China.
- The Chinese government's response to bans includes recommitting to its domestic chip industry, which could impact future demand for Nvidia chips.
- US companies have limited obligations to track the end-use of controlled goods, but Jensen Huang's alleged entanglements could create significant liability for Nvidia if smuggling is confirmed and he was aware.