Financial Trade Freedom - Investing and Stock News
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
  • Investing
  • News
  • Editor’s Pick
  • Economy
  • Stock
No Result
View All Result
Financial Trade Freedom - Investing and Stock News
No Result
View All Result
Home Stock

China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

admin by admin
July 9, 2025
in Stock
0
China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Nvidia’s powerful AI chips are at the center of a quiet construction boom unfolding on the edge of the Gobi Desert in Xinjiang.

In the county of Yiwu, China is racing to build massive data centers: high-tech hubs that reflect its growing ambition to become a global leader in artificial intelligence, even as US export bans on those chips, imposed in 2022, remain firmly in place over national security concerns.

A Bloomberg analysis shows that Chinese tech firms are planning to roll out more than 115,000 Nvidia AI chips.

At the heart of this hardware push are Nvidia’s H100 and H200 models, the same chips that drive cutting-edge AI systems like OpenAI’s GPT-4o and Google’s Gemini.

Eager to close the gap with Western rivals, Chinese companies such as DeepSeek are racing to tap into this computing power.

Still, getting hold of these chips is anything but straightforward.

The US first imposed export restrictions in 2022 and has since tightened the rules, barring Nvidia and its partners from selling their most advanced AI hardware to Chinese buyers.

To close potential loopholes, the US Commerce Department has cracked down on indirect routes such as transshipments through Malaysia and Thailand that Chinese firms have reportedly used, often via shell companies, to sidestep the bans.

One high-profile case in 2024 saw Singaporean authorities charge three people with helping funnel $390 million worth of Nvidia chips to China through Malaysia.

Nvidia Chips in short supply as China’s AI data center boom

Yet despite the hurdles, data center construction is charging ahead in Xinjiang and neighbouring Qinghai.

In late 2024, local governments greenlit 39 new projects many of which openly referenced plans to deploy Nvidia chips, even though those remain subject to US export controls.

By mid-2025, at least seven sites in Xinjiang had either broken ground or signed contracts to provide AI computing services.

One operator even claims it’s running DeepSeek’s latest model on state-of-the-art hardware, though the specifics remain murky.

Still, serious doubts remain about whether China can secure these chips at the scale it needs.

US officials estimate that just 25,000 of the restricted Nvidia processors are currently inside the country, a fraction of what the Xinjiang data center projects alone would require.

There’s also scant evidence of a black market capable of delivering over 100,000 top-tier chips to a single region.

Some analysts suggest that many of these initiatives may be more about signalling alignment with Beijing’s AI goals than about actual computing power on the ground.

‘Made in China 2025’

China’s swift buildout of data centers in the remote deserts of Xinjiang is part of a much larger ambition: turning the country into a global AI superpower.

This push is rooted in strategic plans like “Made in China 2025” and the 2017 New Generation AI Development Plan, both of which emphasize self-reliance, cutting-edge innovation, and a reduced dependence on foreign technology.

Backed by heavy state investment, sprawling infrastructure projects, and efforts to weave AI into everything from industry to national defense, the campaign is moving fast.

But US export curbs on advanced semiconductors have forced Beijing to rethink its sourcing and double down on domestic chip production deepening the fault lines in the global tech rivalry.

The post China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash appeared first on Invezz


Previous Post

Linda Yaccarino resigns as X CEO following Grok controversy

Next Post

Lucid stock price forms descending triangle ahead of earnings

Next Post
Lucid stock price forms descending triangle ahead of earnings

Lucid stock price forms descending triangle ahead of earnings

  • Trending
  • Comments
  • Latest
U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

U.S. homebuilders raise alarm over tariffs as sentiment falls to 5-month low

February 19, 2025
How Companies Use Derivatives To Hedge Risk

How Companies Use Derivatives To Hedge Risk

February 19, 2025
KFC moves U.S. headquarters from Kentucky to Texas

KFC moves U.S. headquarters from Kentucky to Texas

February 19, 2025
Nvidia shares continue golden run, hit fresh highs: analysts remain firmly bullish

Nvidia shares continue golden run, hit fresh highs: analysts remain firmly bullish

June 27, 2025
Lucid stock price forms descending triangle ahead of earnings

Lucid stock price forms descending triangle ahead of earnings

0
From tariffs to DOGE, what companies are saying about the impact of MAGA policies

From tariffs to DOGE, what companies are saying about the impact of MAGA policies

0
Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

Tesla’s law firm drafts Delaware bill that could salvage Musk pay package

0
Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

Coca-Cola takes on Olipop and Poppi with new prebiotic soda brand, Simply Pop

0
Lucid stock price forms descending triangle ahead of earnings

Lucid stock price forms descending triangle ahead of earnings

July 9, 2025
China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

July 9, 2025
Linda Yaccarino resigns as X CEO following Grok  controversy

Linda Yaccarino resigns as X CEO following Grok controversy

July 9, 2025
Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

July 9, 2025

    Get Smarter with Your Money – Sign Up for Free Financial Tips!


    Join our community of savvy savers and investors! By signing up, you'll receive weekly emails packed with personalized financial tips, budgeting hacks, and investment strategies tailored to your income level. Take control of your finances today – it’s free and only takes a minute!

    Recent News

    Lucid stock price forms descending triangle ahead of earnings

    Lucid stock price forms descending triangle ahead of earnings

    July 9, 2025
    China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

    China’s AI gamble: 115,000 Nvidia chips at heart of geopolitical tech clash

    July 9, 2025
    Linda Yaccarino resigns as X CEO following Grok  controversy

    Linda Yaccarino resigns as X CEO following Grok controversy

    July 9, 2025
    Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

    Brazil’s Braskem shares surge on prospects of tax incentive bill backing petrochemical sector

    July 9, 2025
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting
    • About us
    • Contacts
    • Privacy Policy
    • Terms and Conditions
    • Email Whitelisting

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved

    No Result
    View All Result
    • About us
    • Contacts
    • Email Whitelisting
    • Investing and Stock News
    • Privacy Policy
    • Terms and Conditions
    • Thank you

    Disclaimer: FinancialTradeFreedom.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2025 financialtradefreedom.com | All Rights Reserved