Chinese university buys Nvidia AI H200 chips despite US ban, records show | News
University with Military Ties Purchases US AI Chips Amid Scrutiny of Nvidia CEO
A Chinese military-linked university has acquired powerful H200 AI chips from Nvidia, raising concerns in Washington regarding potential breaches of US export regulations. Northwestern Polytechnical University, a member of China’s elite “Seven Sons of National Defense,” purchased two H200 chips last month for approximately 874,700 yuan (about $123,000). This acquisition is outlined in a procurement record dated October 21.
The chips were acquired for the university’s management school through Shaanxi Bosuan Network Technology, rather than through a direct purchase from Nvidia, as noted in the record. This development emerges as scrutiny intensifies around Nvidia CEO Jensen Huang, who is facing allegations related to his lobbying for relaxed restrictions on AI chip sales to China, against the backdrop of reports linking him to a suspected Chinese espionage operation.
The H200 chip is regarded as one of Nvidia’s most advanced offerings for training and deploying AI systems, but its sale to blacklisted institutions such as Northwestern Polytechnical typically requires special approvals from US export authorities, which are often denied.
Despite the restrictions, the university has also managed to secure access to additional Nvidia AI processors through five contracts for rented computing capacity from domestic companies earlier this year. Huang has previously contended that continued US sales to China would help maintain US technological leadership and ensure that Chinese entities rely on American technology.
However, some US lawmakers express concerns that access to advanced AI chips could accelerate China’s progress in developing systems for weaponization, intelligence gathering, and military modernization.
Northwestern Polytechnical, based in Xi’an, focuses on research related to military aircraft, missiles, and satellites. The US Department of Commerce placed the university on its trade blacklist in 2001 due to alleged involvement in missile proliferation activities, tightening restrictions further in 2019. This established a policy of denial for most exports of controlled US technology to the institution.
Despite the challenges posed by these regulations, a Reuters review of procurement records from this and other Chinese institutions indicates a continued pattern of acquiring US-restricted Nvidia chips through domestic suppliers, many of which maintain connections to China’s defense sector.
In January, during the Trump administration, the US began allowing case-by-case exports of certain H200 chips to China, although this policy does not revise restrictions affecting entities on the blacklist.
Both parties in Congress have increasingly advocated for stronger measures to control China’s access to advanced AI chip technology, suggesting chip-tracking requirements and enhanced oversight for export approvals.
The scrutiny surrounding Huang has intensified in light of his reported personal relationship with Alice Huang, considered by some to have ties to Chinese intelligence. Following revelations of the relationship, Republican Senator Kevin Cramer from the Senate Banking Committee called for Huang to resign, citing risks related to potential extortion.
In response to these concerns, three Republican committee chairmen have requested a briefing with Huang on November 18 regarding his reported interactions with the alleged intelligence operative.
Jensen Huang, who co-founded Nvidia over three decades ago, has acknowledged infidelity but stated that there is no evidence suggesting that US national security or confidential information has been compromised. The Nvidia board has initiated an independent investigation to determine whether Huang was targeted by foreign intelligence efforts.
