Loophole: US rules allows Chinese firms to buy, rent NVIDIA AI GPUs, if they're used in the US

Chinese companies that can't buy high-end AI GPUs because of US sanctions are buying or renting them, using them on US soil to avoid being caught.

1 minute & 56 seconds read time

Well, well, well... it looks like Chinese companies that haven't been able to buy high-end AI GPUs like NVIDIA's AI stomping H100 AI GPU, are buying and renting AI GPUs but using them on US soil to skirt around US sanctions banning high-end AI chips from the country.

Loophole: US rules allows Chinese firms to buy, rent NVIDIA AI GPUs, if they're used in the US 11

The Information reports that ByteDance, the Chinese company that owns TikTok, has been renting out the best AI GPUs from NVIDIA from Oracle to use for AI. The news outlet reports from two anonymous sources that China Telecom has been making similar moves with other cloud computing providers.

Another source said that cloud companies Alibaba and Tencent have been reportedly talking with NVIDIA about setting up data centers in the United States, in order to get their hands on the best AI GPUs. The Information reports that two, unnamed (but smaller) cloud companies in the US had declined to rent NVIDIA's current-gen H100 AI GPUs because it "seemed to go against the spirit" of US sanctions.

The Information reached out to NVIDIA, with an NVIDIA spokesperson saying that it supports "new AI data centers in the US" but didn't tackle the issues at hand: allegations that they're talking with Chinese cloud companies, or that ByteDance were accessing their AI GPUs through Oracle.

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Anthony joined the TweakTown team in 2010 and has since reviewed 100s of graphics cards. Anthony is a long time PC enthusiast with a passion of hate for games built around consoles. FPS gaming since the pre-Quake days, where you were insulted if you used a mouse to aim, he has been addicted to gaming and hardware ever since. Working in IT retail for 10 years gave him great experience with custom-built PCs. His addiction to GPU tech is unwavering and has recently taken a keen interest in artificial intelligence (AI) hardware.

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