Chinese engineers have discovered a loophole in US export controls, enabling them to gain access to NVIDIA’s advanced AI accelerators. Despite sanctions imposed by the Biden administration to restrict China’s access to high-end AI technology, the nation continues to find ways around these barriers. Recently, instead of purchasing the expensive equipment directly, Chinese engineers and firms have increasingly turned to “rental services” to utilize NVIDIA’s powerful chips.
The Wall Street Journal reveals that Chinese engineers are collaborating with certain global brokers to procure high-end computing power while using cryptocurrency transactions to maintain anonymity. Although NVIDIA’s premium AI accelerators are still sold in Chinese markets, the rental approach is favored due to its cost-effectiveness compared to outright acquisition.
A notable figure in this new trend is Bitcoin miner Derek Aw, who offers computing power rental services. Aw has successfully persuaded investors to establish large AI clusters using NVIDIA’s H100 AI chips. According to reports, he has set up 300 servers in a Brisbane, Australia data center and aims to expand his rental business further due to high demand.
Mainstream tech giants like Microsoft and Google are also part of this trend, lending NVIDIA’s A100 and H100-based servers to Chinese customers. This practice does not currently violate US laws and is contributing to a rapidly growing “GPU decentralization” industry that allows restricted nations to access necessary computing power.
Additionally, Aw is seeking investments to integrate NVIDIA’s emerging Blackwell AI architecture into his offerings, ensuring that consumers have access to the latest technology. While specific pricing remains undisclosed, the global geopolitical tensions suggest that the GPU decentralization market has significant growth potential.
