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Despite US sanctions, China has enough AI processors to build the world's largest AI training cluster: Report


All the U.S. government's efforts have largely been in vain.

If these entities don't want to smuggle GPUs illegally, they can also acquire Nvidia's cut-down DGX H20 processors aimed at China and shipped to the country without restrictions. Analysts suggest revising the Foreign Direct Product Rule to cover equipment with any American content rather than only those meeting the 25% threshold, thus tightening control over tech exports. However, analysts warn that easing restrictions could undermine U.S. technology leadership and national security in the long term, as these sanctions workarounds are giving China an accelerated path toward AI and semiconductor self-sufficiency.

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