China buys Nvidia’s AI chips despite US export ban, report:University with defence links buys Nvidia H200 AI chips in October worth ₹1.08 crore

A Chinese university with links to the country’s military has managed to buy some of Nvidia’s most powerful AI chips despite being on the US government’s export blacklist. The development has raised questions about how effectively Washington is restricting China’s access to advanced artificial intelligence technology. According to an exclusive report by Reuters, Northwestern Polytechnical University purchased two Nvidia H200 AI chips in October for 874,700 yuan (around $123,000 or approximately ₹1.08 crore). The purchase was made through a Chinese technology supplier rather than directly from Nvidia.
The university is among China’s institutions that have close links with the defence sector. Its purchase also highlights how Chinese organisations may be accessing restricted American technology through local suppliers and computing service providers. Why is the Chinese university on the US blacklist? Northwestern Polytechnical University, based in China’s Xi’an city, is known for research related to military aircraft, missiles and satellites. The US Commerce Department added the university to its Entity List, a trade blacklist, in 2001 over concerns about its alleged involvement in missile-related activities and military research. Restrictions were tightened in 2019, making it difficult for the institution to receive controlled American technology. The university is also part of China’s ‘Seven Sons of National Defense’, a group of universities known for their links with the country’s defence and military research programmes. Under US export rules, institutions on this list generally cannot purchase restricted American technology without special government approval. How did the university get Nvidia H200 chips? According to Reuters, the university purchased two H200 processors through a Chinese supplier named Shaanxi Bosuan Network Technology. The purchase was recorded on the university’s procurement website on October 21. The chips were bought for its management school for 874,700 yuan. However, this was not the university’s only access to Nvidia’s advanced processors. Procurement records reviewed by Reuters also showed that the university had signed contracts with Chinese companies to rent computing capacity powered by Nvidia chips. These contracts included access to servers containing H200 processors, along with other Nvidia chips such as the A100 and A800. The university used these computing resources for AI model training, fine-tuning and other research activities. This suggests that organisations can potentially access restricted computing hardware without purchasing the processors directly. Other Chinese universities also accessed restricted Nvidia chips Reuters reviewed 26 procurement and corporate records from China and found several instances of universities and research institutions purchasing restricted Nvidia processors or renting access to computing services powered by them. Some of the institutions mentioned in the records include: The records indicate that Chinese universities and research institutions are continuing to find ways to access powerful AI computing systems through domestic technology companies. Why does the Nvidia H200 chip matter?
The Nvidia H200 is a high-performance AI processor designed to train and run advanced artificial intelligence models. It can handle large amounts of data and is used in demanding AI computing tasks. Such processors are important for developing advanced AI systems, including applications that could be used in military research, intelligence analysis, and weapons development. This is one reason the US has restricted exports of advanced Nvidia chips to China. American lawmakers are concerned that access to these processors could strengthen China’s military and technological capabilities. What does this mean for US-China technology restrictions? The development comes amid growing debate in Washington over whether the US should allow Nvidia to sell its advanced AI chips to China. Nvidia CEO Jensen Huang has argued that allowing American companies to continue selling technology to Chinese customers would help maintain the US’ technological leadership and prevent customers from shifting towards domestic alternatives. However, several US lawmakers have called for stricter controls, including better tracking of exported chips and greater oversight of sales. The Donald Trump administration began allowing certain H200 exports to China on a case-by-case basis in January. However, this did not remove separate restrictions on organisations on the Entity List. Reuters reported that Northwestern Polytechnical University, Nvidia and the US Commerce Department’s Bureau of Industry and Security did not respond to requests for comment.

Why is Nvidia trending on Google? Nvidia is trending after reports revealed that a Chinese university with military links purchased the company’s advanced H200 AI chips despite being on the US trade blacklist. The development has raised questions about gaps in US restrictions on China’s access to advanced AI technology. The spotlight is also on CEO Jensen Huang, as a controversy surrounding him has fuelled concerns about tighter US controls on Nvidia chip access.
Source: Google Trends