Key Highlights
- PLA-connected Chinese institutions acquired Super Micro servers containing export-restricted Nvidia A100 AI chips within the last year.
- Federal authorities charged three individuals associated with Super Micro last week, including a co-founder, for allegedly facilitating $2.5 billion in illegal AI technology exports to China.
- Super Micro maintains it was victimized by the smuggling operation and was not implicated in federal charges.
- Two U.S. senators have urged Commerce Secretary Howard Lutnick to suspend export licenses for advanced Nvidia AI processors destined for China and regional intermediaries.
- Beihang University and Harbin Institute of Technology — both designated on U.S. export restriction lists — have been identified as purchasers.
Shares of Super Micro Computer (SMCI) and Nvidia (NVDA) experienced significant declines on Thursday following a Reuters investigation revealing that Chinese academic institutions with People’s Liberation Army connections had obtained Super Micro server systems fitted with export-controlled Nvidia AI processors.
Super Micro Computer, Inc., SMCI
According to procurement records examined by Reuters, four Chinese universities completed purchases of these servers during the previous twelve months. Two of these educational institutions maintain established connections with the PLA.
Since 2022, U.S. authorities have imposed restrictions on exporting specific Nvidia processors, including the A100 model, to Chinese entities. These limitations stem from concerns that sophisticated AI hardware could enhance China’s military technological capabilities.
This development follows closely on the heels of last week’s criminal charges against three Super Micro-affiliated individuals — one being the company’s co-founder — accused of orchestrating a smuggling operation that illegally channeled approximately $2.5 billion in U.S. AI technology to China.
The federal indictment did not list Super Micro as a defendant. Company representatives have stated they were unwitting victims of a sophisticated scheme executed by the charged individuals.
Reuters’ investigation also uncovered that two other universities — one maintaining military affiliations — attempted comparable acquisitions, though confirmation of completed transactions remains uncertain.
Super Micro representatives declined to address the procurement documentation. Nvidia issued a statement affirming its ongoing collaboration with customers and federal authorities regarding compliance matters.
Military-Affiliated Institutions Identified in Purchase Documents
Beijing’s Beihang University, recognized as one of China’s “Seven Sons of National Defense,” appears among confirmed purchasers. Documentation dated March 16 reveals the institution procured a machine-learning workstation constructed around a Super Micro platform incorporating four Nvidia A100 processors.
Harbin Institute of Technology (HIT), another “Seven Sons” member renowned for aerospace, satellite, and robotics research, acquired a Super Micro configuration equipped with eight Nvidia A100 chips, according to July procurement notices.
Both institutions appear on U.S. export restriction lists, creating substantial legal barriers for American companies attempting to supply them. Neither university provided responses to media inquiries.
Legislative Response Calls for License Suspension
On Monday, two U.S. senators addressed the matter through correspondence to Commerce Secretary Howard Lutnick. Their letter advocates for a temporary suspension of all export licenses permitting advanced Nvidia processors and server platforms to reach China or intermediary entities throughout Southeast Asia.
The Trump administration had previously authorized sales of Nvidia’s H200 chips — which exceed the performance capabilities of currently restricted products — to Chinese buyers, subject to specific conditions. Sources indicated this month that Nvidia has secured Beijing’s regulatory approval for H200 distribution, though no verified sales transactions have been documented.
Both China’s commerce ministry and the U.S. Commerce Department have not responded to Reuters’ requests for official statements.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
