China is reportedly constructing vast data centres in desert regions to advance its artificial intelligence capabilities. Despite restrictions on certain high-end technology, there are reports that China is seeking to acquire 115,000 restricted Nvidia chips to power these facilities.
These data centres require substantial computing power, leading to the pursuit of advanced GPUs. Due to US sanctions, China's domestic GPU start-ups have been flourishing, showing progress in both hardware and software. Some Chinese AI companies have found workarounds to obtain Nvidia hardware, such as using data centres in Malaysia to train AI models.
However, some AI data centres in China are holding large stocks of China-specific Nvidia RTX 4090D GPUs, and reselling them due to overcapacity. Despite efforts to circumvent restrictions, the US government and Nvidia are engaged in an ongoing cycle of restrictions and workarounds.
