Chinese AI firms are circumventing U.S. export controls on advanced Nvidia chips by smuggling hard drives filled with data to Malaysia for AI model training. In a detailed operation, tech workers transported 4.8 PB of data across borders to utilize 300 rented Nvidia AI servers in a Malaysian data center. This strategy emerged as a response to the U.S. restrictions and the challenges of importing the necessary hardware for AI development. The companies involved have navigated legal and logistical hurdles, including setting up local operations and dealing with the complexities of manual data transport. This situation highlights the difficulties the U.S. faces in enforcing export bans on high-tech components, despite efforts to tighten controls. The ongoing saga reflects the global tech industry’s adaptability and the lengths to which companies will go to continue their AI advancements amidst international regulatory pressures.
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