China continues to find innovative ways to meet its AI development needs amid US export restrictions on high-end AI chips. Chinese engineers have reportedly been transporting hard drives filled with AI models to other countries, such as Malaysia, to access advanced chips.
According to sources, these hard drives, with over eighty terabytes of storage containing essential AI training data like spreadsheets, images, and videos, were discreetly packed into several suitcases. This clever tactic allowed engineers to bypass lengthy data transfers and make use of rented AI servers with cutting-edge technology, potentially from the latest generation of chips.
The meticulous planning behind this operation highlights the lengths to which Chinese AI developers are willing to go. By utilizing data centers in Malaysia through a Singapore-based subsidiary, they managed to perform high-level AI training, effectively navigating around various US-imposed restrictions.
China has been actively engaging with countries like Malaysia, the Philippines, and Singapore to access NVIDIA hardware, whether by renting or otherwise acquiring it. Interestingly, NVIDIA’s exports to Malaysia soared to $3.4 billion last quarter, with a notable portion believed to help satisfy China’s burgeoning AI demands, something even acknowledged by US reports.
Despite efforts to restrict chip exports, China’s persistent strategies illustrate the challenges in enforcing a complete technological blockade, showcasing its ongoing influence in the tech industry.
