How China circumvents AI restrictions from the US

Recent US bans were implemented to limit China’s access to powerful artificial intelligence (AI) hardware for data centers. These restrictions were introduced to prevent the supply of powerful graphics cards to China, as the US government believes that China intends to use these graphics cards for military-grade AI systems.

Despite not being able to buy high-end AI hardware, Chinese companies have found a way to bypass the restrictions. Chinese engineers are utilizing “rental services” through global intermediaries and paying through cryptocurrency to access high-end computer systems. This approach allows them to ensure privacy and access the world’s newest and most powerful Nvidia GPUs for AI.

Chinese customers are also reported to be using Bitcoin mining services to build large-scale AI clusters based on Nvidia GPUs. Companies like Microsoft and Google are involved in building Nvidia-based servers to rent to Chinese customers, creating new business opportunities and potentially leading to high profits.

This development may prompt US officials to reconsider further restrictive measures to limit China’s access to AI computing power.

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