In violation of the ban, Google and Microsoft supply AI chips to China
Microsoft and Google are reportedly offering Chinese companies access to NVIDIA AI chips through offshore data centres.
In October 2022, U.S. President Biden, citing national security, banned Nvidia (NVDA) from exporting advanced AI chips to China and gradually tightened control over China's semiconductor technology. However, Chinese companies have actively sought loopholes to circumvent these restrictions.
Microsoft (MSFT) and Google (GOOG) are providing Chinese companies with access to Nvidia AI chips through overseas data centers. Microsoft allows Chinese customers to use chips, including Nvidia's A100 and H100, through its server leasing services. Google permits Chinese customers to use its overseas servers, claiming compliance with U.S. export control regulations.
The U.S. government may further tighten technology export restrictions to China and pressure semiconductor equipment suppliers in Japan and the Netherlands. However, Microsoft, Google’s parent company Alphabet, Nvidia, and the U.S. Department of Commerce have yet to respond to this situation.
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