[News] NVIDIA Reportedly Asks Super Micro to Investigate AI Chips Acquired by China Following U.S. Demand

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According to a report from Reuters, citing The Information, the U.S. Department of Commerce has recently requested NVIDIA to investigate how its AI chips ended up in China over the past year. This request comes as part of ongoing efforts to enforce export control regulations and address potential unauthorized resales.

NVIDIA Ordered Spot Checks for Distributors

The report notes that NVIDIA has asked major distributors, including Super Micro Computer and Dell Technologies, to perform spot checks on their clients in Southeast Asia, since servers from Super Micro and Dell are integrated with NVIDIA AI chips.

Smuggling Activities and Forged Server Serial Numbers

Despite these measures, five individuals involved in smuggling NVIDIA chips claimed they have successfully evaded detection during recent inspections conducted by Super Micro, according to The Information.

The report also highlights, based on a source close to Super Micro, that some customers duplicated the serial numbers of servers equipped with NVIDIA chips purchased from Super Micro and applied them to other servers within their access. In some cases, smugglers reportedly altered the serial numbers within the servers’ operating systems to avoid detection.

Response from Super Micro and Dell

In response to the investigation, Dell Technologies reaffirmed its commitment to compliance, stating that it requires distributors and resellers to follow all applicable regulations. Dell also noted that it might terminate relationships with non-compliant partners. Similarly, Super Micro stated that it investigates and takes action against any unauthorized exports or re-exports of its products by third parties, adhering to U.S. export control requirements under the Export Administration Regulation.

NVIDIA AI Chips Sales in China Despite Restrictions

The report points out that the Biden administration has intensified its crackdown on AI chip exports to China. Despite these restrictions, several Chinese universities and research institutes have managed to acquire NVIDIA chips through resellers, according to Reuters.

A Wccftech report from April 2024 also notes that a Shenzhen merchant is promoting the sale of the NVIDIA H100 SXM5 8 GPU Xeon AI Supermicro server, equipped with Nvidia H100 chips on the Chinese IT website “ZOL.”

NVIDIA’s call for a probe into its distributors comes at a time when its relationship with Super Micro appears to be under strain. According to a report from Liberty Times from November, citing Chinese media outlet Cailian Press, NVIDIA has reportedly been shifting orders that were previously directed to Supermicro to other suppliers to avoid risks caused by Super Micro’s financial troubles since the company was under misconduct allegations at that time.

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(Photo credit: NVIDIA)