Despite US ban, Chinese military university bought Nvidia AI chips

Nvidia's powerful H200 artificial intelligence chips were purchased by a Chinese university last month despite being on the US export blacklist. According to an NDTV report, this purchase shows how Chinese institutions with military ties are acquiring US AI computing power and the loopholes that remain in Washington's attempts to control advanced technology.

These findings come at a time when Nvidia and its CEO Jensen Huang are facing intense scrutiny in Washington over lobbying to ease restrictions on sales of AI chips to China. There have also been reports that Huang was targeted by a Chinese espionage operation. Huang has argued that maintaining continued US sales to China will protect American technological leadership and keep Chinese customers dependent on US technology. But some US lawmakers say that access to Nvidia's most powerful AI chips could accelerate China's development of AI systems for weapons design, intelligence analysis, and military modernization.

Both congressional Democrats and Republicans have demanded stronger controls on China's access to advanced AI chips, such as chip-tracking requirements and greater congressional oversight on exports. Republican chairs of three congressional committees requested a briefing with Huang on November 18 regarding his alleged contacts with a suspected Chinese intelligence operative. Northwestern Polytechnical University, which has close ties to China's People's Liberation Army, purchased two H200 chips last month for 8,74,700 yuan, or $1,23,000, according to procurement records on its website dated October 21.

According to the records, these chips were purchased not directly from Nvidia but through a local supplier, Shaanxi Bosuan Network Technology, for its management school. The H200 is among Nvidia's most capable chips for training and running advanced AI systems and is subject to US export license approvals, which are typically denied to blacklisted entities like Northwestern Polytechnical. Procurement records show that Northwestern Polytechnical has also purchased access to H200 chips and other powerful Nvidia AI processors this year through five contracts for computing capacity rented from Chinese companies.

This chip purchase and the computing contracts were first reported by Reuters. Northwestern Polytechnical, Nvidia, and the US Commerce Department's Bureau of Industry and Security, which oversees export controls, did not respond to requests for comment. Reuters could not determine contact details for Shaanxi Bosuan Network Technology. Northwestern Polytechnical University is part of China's "Seven Sons" group of national defense-focused universities.

Located in China's northwestern city of Xi'an, this university conducts research related to military aircraft, missiles, and satellites.