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  • D.C.
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  • Dubai
  • Beijing
  • SG

Updated Jul 3, 2024, 6:33pm EDT

China’s underground AI chip market

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A barely secret network of smugglers regularly brings Nvidia chips into China, bypassing US sanctions. More than 70 distributors openly advertise what they say are Nvidia products, and buyers can usually get hold of them within weeks. Some sellers offer entire servers, worth around $300,000 and containing eight high-end chips. The smuggled quantities are not enough for a tech giant, but could meet the needs of smaller research institutions or startups.

The Wall Street Journal found one Chinese student who was paid $600 to carry six Nvidia chips, each worth tens of thousands of dollars, through Singapore customs. “I’m glad I was able to do something for my country,” he said, “and make a little extra money.”

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