In a move that has raised concerns over the export of advanced AI technology to China, Northwestern Polytechnical University, a prominent defense-focused institution in China, has purchased two Nvidia H200 chips despite being on the U.S. export blacklist. The transaction took place last month and was recorded in an October 21 procurement record on the university's website. The chips were bought through a domestic supplier, Shaanxi Bosuan Network Technology, rather than directly from Nvidia.
The acquisition comes amidst mounting scrutiny in Washington over Nvidia CEO Jensen Huang's lobbying for looser restrictions on AI chip sales to China, following reports of his alleged ties to Chinese intelligence. The H200 is among Nvidia's most powerful chips for training and running advanced AI systems and is subject to U.S. export licence approvals, which are typically denied for blacklisted institutions such as Northwestern Polytechnical.
Further investigations by Reuters have revealed that Northwestern Polytechnical also acquired access this year to H200 chips and other powerful Nvidia AI processors through five contracts for rented computing capacity from Chinese companies. This suggests a pattern of Chinese institutions with military ties obtaining U.S. AI computing power through domestic suppliers, either by buying chips outright or renting access to servers containing them.
The university's acquisition underscores the ongoing challenge of enforcing export controls on advanced technology, particularly in the field of AI. The U.S. administration has allowed some H200 exports to China on a case-by-case basis, but restrictions still apply to Entity List organizations like Northwestern Polytechnical. The incident has sparked calls for stronger controls and greater oversight over the export of advanced AI chips to China from both Democrats and Republicans in the U.S. Congress.
The controversy surrounding Nvidia CEO Jensen Huang is escalating, with Republican Senator Kevin Cramer calling for his resignation following reports of an intimate relationship with Alice Huang, who is accused of working for Chinese intelligence. The potential national security implications of such relationships have raised concerns within the U.S., particularly given the sensitive nature of Nvidia's technology. An independent investigation into these allegations has been announced by Nvidia's board.