Nvidia Chips Slip Through Export Controls as China's AI Ambitions Soar

China's AI development has raised questions about Nvidia's role in circumventing US export controls. The US government has been trying to keep its most powerful AI chips out of Chinese hands, but a recent report suggests that Chinese companies are finding ways to acquire them.

Moonshot AI, a major Chinese AI player, reportedly trained its advanced Kimi K3 model using Nvidia's high-end chips, including the Blackwell or GB300 variants. The company acquired servers equipped with GB300 chips in Thailand, which allows it to develop its models without violating US export controls.

This is not the first time that a Chinese company has been accused of getting around US restrictions on Nvidia AI chip exports. DeepSeek, another major Chinese AI player, reportedly trained its latest model using Nvidia's Blackwell chip in Inner Mongolia despite existing bans on sales to China.

The White House OSTP Director Michael Kratsios stated that Moonshot AI acquired the servers equipped with GB300 chips in Thailand, effectively sidestepping US export controls. The company recently raised $3.5 billion in funding, valuing it at $35 billion following the Kimi K3 launch.