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According to The Information, Chinese companies are looking for loopholes in U.S. sanctions to use high-end artificial intelligence chips.
ByteDance (BDNCE) has been leasing Nvidia’s (NASDAQ: NVDA) from Oracle’s high-end graphics processing unit (NYSE:ORCL) To get rid of U.S. sanctions, news media Add tociting two people with knowledge of the arrangement.
Oracle stock is up 0.8% In early trading on Thursday, Nvidia, whose market value reached $3T on Wednesday, down 1.4%.
Nvidia and Oracle did not immediately respond to Seeking Alpha’s request for comment.
Citing a person familiar with the matter, the news outlet added that China Telecom has considered deals with other cloud providers, while Alibaba (BABA) and Tencent (OTCPK:TCEHY) have been in talks with Nvidia to obtain data centers for their operations in the United States. Chip matters.
The Biden administration last year discussed issuing an executive order requiring cloud computing companies to disclose certain information about their respective customers to the U.S. government.
There were reports in April that some Chinese research institutions have been able to purchase Nvidia’s high-end artificial intelligence chips through dealers. The advanced chips are embedded in server products made by Super Micro Computer Corp (SMCI) and Dell Technologies (DELL), according to the tenders completed between November 20 and February 28.
The United States expanded chip export controls in October 2023.
Nvidia has built several low-end GPUs – the H20 L20 and L2 – specifically for China to comply with U.S. export control policies. Volume production of the wafer began earlier this year.
Reports emerged last month that Nvidia had lowered the price of the H20 to make it cheaper than rival chips from Chinese tech giant Huawei.
The Information reported last month that Chinese officials have asked the country’s technology companies to support domestic artificial intelligence chips instead of foreign-made chips.
