Key Highlights
- Super Micro servers containing restricted Nvidia A100 processors were acquired by four Chinese academic institutions, including two with People’s Liberation Army connections, during the last year.
- Federal authorities charged three individuals associated with Super Micro, including one of the company’s co-founders, for allegedly facilitating the illegal transfer of $2.5 billion in American AI technology to Chinese entities.
- The server manufacturer maintains it was exploited by the accused individuals and emphasizes that it was not mentioned in the criminal charges.
- A bipartisan duo of U.S. senators has urged Commerce Secretary Howard Lutnick to implement an immediate suspension of all export authorizations for sophisticated Nvidia AI processors destined for China and intermediary nations in Southeast Asia.
- Beihang University and Harbin Institute of Technology — both institutions currently listed on America’s export restriction registry — were identified as purchasers of the prohibited technology.
Shares of Super Micro Computer (SMCI) and Nvidia (NVDA) experienced significant declines on Thursday following a Reuters investigation revealing that Chinese academic institutions with military connections successfully obtained Super Micro servers containing export-controlled Nvidia artificial intelligence chips.
Super Micro Computer, Inc., SMCI
According to procurement documentation examined by Reuters, four universities in China completed purchases of these servers within the past twelve months. Two of these educational institutions maintain documented relationships with the PLA.
Since 2022, American authorities have imposed restrictions on exporting specific Nvidia processors, including the A100 model, to Chinese buyers. These limitations stem from concerns that cutting-edge AI processing technology could enhance China’s defense and military operations.
These revelations surface merely days following the criminal indictment of three individuals with Super Micro connections — one being a company co-founder — who face allegations of orchestrating the illegal export of at least $2.5 billion in American artificial intelligence hardware to China.
The indictment does not name Super Micro as a defendant. Company representatives have stated that the organization was victimized by a sophisticated illegal operation conducted by the charged individuals.
Reuters’ investigation also uncovered evidence that two other Chinese universities — one maintaining military relationships — made attempts to acquire comparable equipment, though the completion status of those transactions remains uncertain.
Super Micro representatives refused to provide statements regarding the procurement documentation. Nvidia issued a statement indicating its ongoing collaboration with clients and federal authorities to ensure regulatory compliance.
Military-Connected Institutions Identified in Purchase Documents
Beihang University, located in Beijing and recognized as one of China’s prestigious “Seven Sons of National Defense,” appears in the confirmed buyer list. Documentation dated March 16 reveals the institution obtained a machine-learning workstation constructed around a Super Micro platform featuring four Nvidia A100 processors.
Harbin Institute of Technology (HIT), another member of the “Seven Sons” group with established expertise in missile technology, satellite systems, and robotic applications, acquired a Super Micro configuration equipped with eight Nvidia A100 chips, based on procurement notices from July.
Both educational institutions appear on America’s export restriction list, creating substantial legal barriers for U.S. corporations attempting to supply them with controlled technology. Neither university provided responses to media inquiries.
Legislative Leaders Demand Export License Freeze
Responding to these developments, two United States senators contacted Commerce Secretary Howard Lutnick on Monday with a formal letter. Their communication requests consideration of an immediate halt to all export licenses permitting advanced Nvidia processors and server platforms to reach Chinese destinations or intermediary locations throughout Southeast Asia.
The current administration had previously granted authorization for Nvidia’s H200 chip sales — a more advanced product than currently restricted models — to Chinese purchasers, subject to specific requirements. Information surfaced this month indicating that Nvidia has secured regulatory approval from Beijing authorities to market the H200, although no verified transactions have been documented to date.
Neither China’s commerce ministry representatives nor officials from the U.S. Commerce Department provided responses to Reuters’ inquiries seeking comment.
