Chips smuggled from the USA are in Chinese universities. Nvidia CEO summoned for testimony

It was revealed that Northwest Polytechnic University, which is affiliated with the Chinese army, purchased advanced H200 artificial intelligence chips from Nvidia, despite being on the blacklist of the US Department of Commerce.

According to an exclusive report by Reuters agency, the official tender record on the website dated October 21 revealed that the university administration paid 874 thousand 700 yuan ($123 thousand) to the local Shaanxi Bosuan Network Technology company for two H200 chips.

The institution, which conducts defense research for the Beijing administration and is included in the "Seven Sons of National Defense" group, procured these chips through local intermediary companies rather than directly from the manufacturer.

The institution, which conducts military aircraft, missile and satellite research, has been subject to US export restrictions since 2001.

The sale of H200 processors, which are used to design advanced artificial intelligence models, to blacklisted organizations is not approved due to US rules.

Bidding records documented that in addition to purchasing the chips, the university also gained access to these processors by renting servers.

The cyber security faculty at the university signed two separate contracts in January, providing seven-month access to servers containing eight H200s for artificial intelligence training.

The organization also rented servers powered by Nvidia A100 and A800 chips, which are completely banned from being sold to China.

The 26 public tenders examined showed that many institutions, including Shenzhen, Wuhan Technology and Beihang universities, purchased or leased the H100 and A100 models through local companies.

The universities mentioned in the records and the local suppliers who make the sales have not yet made a statement on the issue.

It was recently revealed that Nvidia CEO Jensen Huang had a forbidden love affair with Alice Huang, who is suspected of spying on behalf of Chinese intelligence.

According to news from US intelligence officials and the New York Times, it is thought that China's Ministry of State Security may have used Alice Huang as an agent to gather intelligence.

It was determined that the two, whose paths crossed in Singapore at the end of 2023, have been together in locations such as Taiwan, Shanghai and Silicon Valley for the last three years.

Megaspeed, a Singapore-based data center company whose management team includes Alice Huang, has become one of Southeast Asia's largest customers by supplying more than $4 billion worth of chips from Nvidia in recent years.

The Washington administration launched an investigation on the claim that Megaspeed smuggled the advanced semiconductors in question to China, bypassing American sanctions.

Some lawmakers in Congress warn that advanced processors could speed up the Chinese military's weapons design and intelligence capabilities.

Both Democratic and Republican members want tracking requirements on chip shipments and tightening export controls.

Three committee chairmen in the House of Representatives requested a private meeting with Jensen Huang on November 18 due to allegations of contact with Chinese intelligence and lobbying activities for the sale of chips.

Northwest Polytechnic University, Nvidia and the US Department of Commerce Bureau of Industry and Security did not make a statement on the issue.