China Sidesteps AI Chip Bans Using US Cloud Providers 

Key Takeaways

• Chinese entities are continuing to access high-end AI chips through US cloud service providers.
• Over the past two years, the US government has restricted the export of advanced technology and AI chips to China.
• Shenzhen University spent 200,000 yuan ($28,000) on an AWS account to access Nvidia A100 and H100-powered cloud servers. 

State-linked Chinese entities are using US cloud service providers, including Amazon Web Services (AWS), to access US AI chips previously banned from the country by the Biden Administration.

After reviewing over 50 tender documents, Reuters  found that at least 11 Chinese entities attempted to obtain access to US technologies or cloud services. 

China Continuing To Use AWS

According to the publication, four of the entities named AWS as their cloud service provider. However, the services were accessed through third-party Chinese companies rather than directly through AWS.

In April, Zhejiang Lab wrote in a tender document that it planned to spend 184,000 yuan to purchase AWS cloud computing services. 

The Chinese research institute, which is developing its own large language model, said it was not getting enough computing power from China-based Alibaba. 

In another tender document viewed by Reuters, Shenzhen University spent 200,000 yuan ($28,000) on an AWS account to access Nvidia A100 and H100-powered cloud servers. 

According to documents, Amazon also provided Chinese organizations access to AI models, including Anthropic’s Claude.

Reuters reviewed several posts  in Amazon’s Chinese-language channels highlighting the opportunity to try “world-class AI models.”

According to Reuters, after contacting Amazon for comment, the tech giant updated dozens of posts with a note stating that some were unavailable in China-based cloud regions.

In a statement to CCN, an Amazon spokesperson said: “AWS complies with all applicable US laws, including trade laws, regarding the provision of AWS services inside and outside of China.”

A Loophole With US Cloud Providers

Over the past two years, the US government has restricted the export of advanced technology and AI chips to China as the tensions between the two nations continue to grow. 

However, providing access to high-end equipment and AI models via the cloud does not violate any US regulations since only exports or transfers of services and technology are regulated.

In April, legislation to regulate remote access to US technology was introduced to Congress but it is not confirmed when it will be passed.

US Companies Attempting To Navigate Restrictions

A range of companies have sought to create modified versions of their advanced AI chips specifically for the Chinese market.

Companies like Nvidia have created modified versions of their advanced AI chips specifically for the Chinese market. For example, Nvidia developed the A800 and H800 chips, which have slightly reduced capabilities compared to the restricted A100 and H100 models.

This allows Nvidia to continue selling advanced chips in China while staying within the bounds of US regulations.

In January, Oracle and Nvidia were accused of working with Chinese companies to grant them access to advanced tech in the US to avoid sanctions.

Alibaba and Tencent reportedly  spoke to Nvidia about obtaining export-controlled chips for use at data centers that the two companies would use on US soil.

About the Author

Kurt Robson

Kurt Robson is a London-based reporter at CCN with a diverse background across several prominent news outlets. Having transitioned into the world of technology journalism several years ago, Kurt has developed a keen fascination with all things AI. Kurt’s reporting blends a passion for innovation with a commitment to delivering insightful, accurate and engaging stories on the cutting edge of technology.

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