The United States has attempted to halt China’s advancements in artificial intelligence due to concerns that this technology is bolstering the modernization of the Chinese military. U.S. officials have implemented one of the most extensive tech blockades in history, prohibiting the export of advanced A.I. chips, primarily produced by Nvidia, a leading Silicon Valley company.

However, the significant profits involved have led businesses globally to find ways to bypass these restrictions, as revealed by an investigation from The New York Times. Interviews with over 85 current and former U.S. officials, executives, and industry analysts, along with reviews of corporate records and visits to companies in cities like Beijing, Kunshan, and Shenzhen, have uncovered a thriving trade in restricted A.I. technology within China, part of a broader effort to circumvent U.S. national security measures.

What are the main findings of the investigation?

Here are some key takeaways:

An underground marketplace is thriving.

The Times engaged with representatives from 11 companies in China that claimed to sell or transport banned Nvidia chips, discovering many more businesses offering these products online.

In conclusion, the ongoing trade in A.I. chips highlights the complexities of international technology regulations and the lengths to which businesses will go to capitalize on lucrative markets, even in the face of stringent restrictions.