Northwestern Polytechnical buys Nvidia H200 chips in China despite U.S. blacklist

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Polytechnical buys Nvidia H200 in China

Highlights

Northwestern Polytechnical University purchased two Nvidia H200 chips for 874,700 yuan ($123,000) via Shaanxi Bosuan Network Technology on October 21, despite U.S. export restrictions.
The university secured access to H200 chips and other Nvidia AI processors through five additional contracts renting computing capacity from Chinese companies in 2024.
The findings increase scrutiny on Nvidia and CEO Jensen Huang as U.S. lawmakers demand tighter export controls and oversight to hinder China's military AI development.

Procurement records expose access route

As reported by Reuters, Northwestern Polytechnical University, one of China's "Seven Sons of National Defense" universities, bought two Nvidia H200 chips on October 21 for 874,700 yuan, about $123,000, according to a procurement record posted on its website.

The record shows the chips were purchased for the university's management school through Shaanxi Bosuan Network Technology rather than directly from Nvidia. The H200 is among Nvidia's most capable chips for training and running advanced AI systems, and exports of the chip require U.S. licence approvals that are normally denied for blacklisted institutions such as Northwestern Polytechnical.

The university also bought access this year to H200 chips and other powerful Nvidia AI processors through five contracts for rented computing capacity from Chinese companies. The purchases illustrate how Chinese entities with defence ties can obtain U.S. AI computing power either by buying chips through domestic suppliers or renting access to servers that contain them.

Pressure builds on Nvidia and export controls

The findings add to scrutiny in Washington of Nvidia and chief executive Jensen Huang as he pushes for looser restrictions on AI chip sales to China. Huang argues that continued U.S. sales help preserve American technological leadership and keep Chinese customers dependent on U.S. technology.

Some U.S. lawmakers say access to Nvidia's most advanced chips can accelerate China's development of AI systems for weapons design, intelligence analysis and military modernization. Democrats and Republicans in Congress are urging tighter controls, including chip-tracking requirements and stronger congressional oversight of exports, while three Republican committee chairmen have requested a briefing with Huang on November 18 over his reported contacts with an alleged Chinese intelligence operative.

The U.S. Commerce Department added Northwestern Polytechnical to the Entity List in 2001 over alleged involvement in missile-proliferation activities and military research. Restrictions were tightened in 2019, making licences for exports of controlled U.S. technology to the university subject to a policy of denial in most circumstances. Reuters said its review of 26 Chinese procurement and corporate records from this year found other universities and research institutions also buying U.S.-restricted Nvidia chips or renting Nvidia-powered computing services through domestic suppliers.

As we noted earlier, Nvidia urged deeper AI safety dialogue with Chinese companies as regulatory scrutiny intensifies.

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