Key Highlights
- Super Micro servers containing restricted Nvidia A100 processors were acquired by four Chinese universities, including two institutions with People’s Liberation Army connections, within the last twelve months.
- Federal authorities indicted three individuals associated with Super Micro last week, alleging their involvement in a $2.5 billion smuggling operation of U.S. artificial intelligence technology to China.
- Super Micro maintains it was a victim of fraudulent activity and emphasizes the company itself was not charged in the indictment.
- A bipartisan pair of U.S. senators has urged Commerce Secretary Howard Lutnick to suspend all export authorizations for cutting-edge Nvidia AI processors to China and intermediary nations in Southeast Asia.
- Beihang University and Harbin Institute of Technology — both designated on America’s export restriction list — have been identified as recipients of these systems.
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 affiliations obtained Super Micro server systems containing export-restricted Nvidia artificial intelligence chips.
Super Micro Computer, Inc., SMCI
According to procurement documentation examined by Reuters, four Chinese universities completed purchases of these servers during the previous year. Two of these institutions maintain established relationships with the PLA.
Since 2022, the United States government has prohibited the export of specific Nvidia processors, notably the A100 model, to Chinese entities. This restriction stems from national security 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 filed against three individuals linked to Super Micro — one being the company’s co-founder — accused of facilitating the illegal export of approximately $2.5 billion in American AI technology to China.
The company was not identified as a defendant in the federal indictment. Super Micro has publicly stated it fell victim to a sophisticated smuggling operation orchestrated by the charged individuals.
Reuters’ investigation also uncovered that two additional universities — including one with military research connections — initiated efforts to procure similar equipment, although the completion status of those transactions remains uncertain.
Super Micro refused to provide commentary regarding the procurement documentation. Nvidia issued a statement indicating its ongoing collaboration with clients and federal authorities to ensure regulatory compliance.
Blacklisted Military-Affiliated Institutions Identified as Buyers
Beijing’s Beihang University, recognized as one of China’s elite “Seven Sons of National Defense” institutions, appears among the confirmed purchasers. Documentation dated March 16 reveals the university acquired a machine-learning computational system constructed using Super Micro infrastructure equipped with four Nvidia A100 processors.
The Harbin Institute of Technology (HIT), another “Seven Sons” establishment renowned for advanced research in missile systems, satellite technology, and robotics, obtained a Super Micro platform featuring eight Nvidia A100 processors, as evidenced by a July procurement notice.
Both educational institutions appear on the United States export control entity list, creating substantial legal barriers for American corporations seeking to supply them with advanced technology. Neither university provided responses to media inquiries.
Congressional Leaders Demand Export License Freeze
Responding to these revelations, two United States senators addressed a formal letter to Commerce Secretary Howard Lutnick on Monday. The correspondence advocates for an immediate suspension of all export licenses permitting advanced Nvidia processors and server infrastructure to reach Chinese entities or intermediary distributors operating in Southeast Asian countries.
The Trump administration had previously authorized sales of Nvidia’s H200 processors — which surpass the performance capabilities of currently restricted products — to China, subject to specific regulatory conditions. Intelligence sources disclosed this month that Nvidia has secured Beijing’s regulatory approval for H200 sales, though no verified transactions have been documented to date.
Neither China’s commerce ministry nor the United States Commerce Department offered responses to Reuters’ requests for official statements.
