Nvidia Chips Fuel China's AI Ambitions Despite Export Controls

A Chinese state-backed financing entity has purchased over 700 servers powered by Nvidia's high-performance B300 Blackwell chips, despite strict export controls. The financial support signals a direct effort by local government entities to sustain China's artificial intelligence ambitions.

The Semi-Tech Leasing Group Co., which is predominantly controlled by municipal government entities in Shenzhen and Beijing, provided the financing for the purchase of more than 700 servers. This includes at least one transaction that explicitly funded 32 Asustek Computer Inc. servers powered by Nvidia's high-performance B300 Blackwell chips.

Nvidia told Bloomberg that it is investigating the matter with its equipment manufacturing partners, while Asus reiterated its commitment to international export control regulations.