Nvidia's Role in China's AI Development Raises Export Control Fears

China's AI model development has raised questions over Nvidia's role in circumventing US export controls, with two major Chinese companies accused of acquiring restricted hardware. Moonshot AI and DeepSeek have reportedly used Nvidia's high-end chips to train their advanced models, despite existing bans on sales to China.

The US government has been trying to keep its most powerful AI chips out of Chinese hands for years, but it appears that strategy is proving ineffective. White House OSTP Director Michael Kratsios stated in July that Moonshot AI acquired servers equipped with GB300 chips in Thailand to develop its models.

Moonshot AI recently raised $3.5 billion in funding, valuing the firm at $35 billion following the Kimi K3 launch. The company is reportedly pursuing additional Nvidia Blackwell chips for its upcoming Kimi K4 model, signaling that whatever channels exist for acquiring this hardware remain open for business.

The Nvidia problem has been ongoing since 2022-2023, with renewed efforts to tighten loopholes as recently as May 2026. Despite these efforts, both Moonshot AI and DeepSeek have managed to train frontier AI models using the very chips Washington doesn't want them to have.