For some time now, Chinese companies have seen their access to US artificial intelligence chips and technologies limited due to trade restrictions. Washington has been trying to curb Beijing’s AI advances. However, it appears that the measures have not been as effective as intended. Recent reports claim that China will set up massive data centers powered by over 115,000 high-end NVIDIA AI GPUs.
Despite strict US export bans aimed at limiting China’s access to their AI technology, Beijing will reportedly use H100 and H200 Hopper GPUs. If you’re not aware, these GPU models are subject to US restrictions.
115,000 NVIDIA AI chips will power China’s massive data centers
This ambitious undertaking involves building a network of approximately 36 to 39 AI data centers. China will strategically locate them in Western regions, including Xinjiang and Qinghai. A substantial portion of this immense processing power, estimated at around 70% (80,500 GPUs), is slated for a single state-owned data center near Yiwu in Xinjiang Province. The country chooses remote locations for their abundant resources like wind, solar, and coal, coupled with cooler, high-altitude climates ideal for managing large-scale computing infrastructure.
Several prominent Chinese AI firms are part of this initiative. The report adds that there is also strong support from the Chinese government. The sheer scale of this project is impressive, with the planned number of GPUs rivaling or even exceeding the compute capacity used by some of the most advanced AI models globally.
Is China turning to third-party suppliers?
The question naturally arises: how does China plan to acquire such a vast quantity of restricted NVIDIA chips? The US trade bans aim to prevent direct sales. While details are scarce, experts suggest that procurement might occur through third-party suppliers or even via black market channels. However, US officials have expressed skepticism about the feasibility of an unorganized network supplying chips on this scale.
Regardless of the sourcing methods, China’s confidence in proceeding with such a colossal infrastructure project indicates a strong expectation of obtaining these crucial components. It also subtly hints at China’s ongoing efforts to bolster its domestic AI chip manufacturing capabilities. For US officials, China’s advancement in AI is a danger to national security. It remains to be seen how the situation develops and whether Washington responds.
