China Plans to Install Over 115,000 Nvidia AI Chips Despite U.S. Export Bans

China is planning to install over 115,000 Nvidia AI chips in remote provinces for large-scale AI systems, challenging U.S. export bans. This move aligns with President Xi Jinping’s focus on AI for economic growth and military modernization, but sourcing restrictions pose significant hurdles.

U.S. officials estimate China has around 25,000 banned Nvidia chips, insufficient for the planned deployment. The gap between ambition and chip supply may signal policy intent rather than a feasible roadmap, especially with increased U.S. scrutiny on exports.

Nvidia remains crucial for global AI despite export restrictions, shaping AI compute globally. China’s success in circumventing export barriers could impact global AI competitiveness, while failure to secure supply may hinder model development progress.

China’s goal to deploy thousands of Nvidia chips faces challenges due to export controls. The battle for AI dominance is intensifying, with chip supply becoming a crucial factor for both investors and policymakers to monitor closely.