NVIDIA’s high-end AI servers have unexpectedly made their way into China, revealing a steady flow of AI chips into the country through various means.
Reports suggest that NVIDIA AI equipment worth $1 billion has entered China following recent US export controls. The Trump administration has expressed concerns about American AI chips reaching China through dubious channels and is working on regulatory measures. Despite these efforts, NVIDIA’s equipment remains available in Chinese black markets. According to the Financial Times, AI products valued at over $1 billion have entered China’s markets since the imposition of US export controls, with even large systems like the GB200 AI servers accessible in the region.
The Financial Times reviewed several sales contracts and filings, uncovering that Chinese markets are highly interested in NVIDIA’s B200-powered systems, which are readily available locally. After the initial ban on the H20 AI accelerator, distributors secured the B200 system through trade loopholes and grey channels not yet addressed by the US government. Notably, Chinese provinces such as Anhui reportedly possess a significant inventory of NVIDIA AI chips, including B200, H100, and H200 models.
Interestingly, many Chinese companies allegedly acquiring NVIDIA’s chips through distributors have operations in regions like Singapore. A substantial portion of these AI systems comes under Supermicro (SMCI) packaging. These AI systems are sold across several Chinese retail platforms, with sellers often showcasing live tests to verify the systems’ legitimacy, signaling that export controls haven’t entirely curtailed the flow of chips.
Individuals are also selling the GB200 AI systems, which are among NVIDIA’s most sought-after platforms worldwide. Although the Financial Times could not verify their presence in China’s markets, many vendors confirm the availability of Grace Blackwell systems. While the volume of AI equipment sold is small compared to global AI clusters, the hardware meets the needs of low-to-mid-level Chinese cloud service providers.
It will be interesting to observe how the US responds to these developments, given their efforts to patch the flow of AI equipment to China by any means necessary.
