Key Points
- Chinese universities with PLA connections acquired Super Micro servers containing export-restricted Nvidia A100 processors during the previous twelve months.
- Federal authorities charged three individuals associated with Super Micro, including a company co-founder, regarding alleged smuggling of $2.5 billion in American AI technology to China.
- Super Micro maintains it fell victim to the alleged scheme and faces no charges in the indictment.
- Two senators have urged Commerce Secretary Howard Lutnick to suspend export licenses permitting advanced Nvidia AI processors to reach China and Southeast Asian distribution channels.
- Beihang University and Harbin Institute of Technology — institutions appearing on U.S. export restriction lists — obtained the hardware.
Shares of Super Micro Computer (SMCI) and Nvidia (NVDA) experienced significant declines Thursday following a Reuters investigation revealing that Chinese academic institutions maintaining connections to the People’s Liberation Army obtained Super Micro servers containing export-controlled Nvidia AI processors.
Super Micro Computer, Inc., SMCI
Procurement records examined by Reuters indicate that four Chinese universities completed these acquisitions within the past year. Half of these institutions maintain established relationships with the PLA.
American authorities have maintained restrictions on exporting specific Nvidia processors, particularly the A100 model, to China beginning in 2022. Officials express concerns that sophisticated AI processing technology could enhance China’s military operations and capabilities.
These revelations emerge shortly after prosecutors charged three individuals with Super Micro connections — one being the company’s co-founder — with allegedly orchestrating the smuggling of approximately $2.5 billion in American AI technology to Chinese entities.
The indictment does not identify Super Micro as a defendant. Company representatives assert the organization suffered as a target of an elaborate operation conducted by the charged individuals.
Reuters’ investigation uncovered that two other universities — including another institution with military affiliations — initiated similar procurement efforts, though completion of those transactions remains unconfirmed.
Super Micro representatives declined to address questions regarding the procurement documentation. Nvidia issued a statement emphasizing ongoing collaboration with clients and federal authorities regarding compliance matters.
Military-Connected Institutions Identified in Purchase Records
Beihang University in Beijing represents one confirmed purchaser. The institution belongs to China’s “Seven Sons of National Defense” group. Documentation dated March 16 reveals the university acquired a machine-learning workstation constructed around a Super Micro platform featuring four Nvidia A100 processors.
Harbin Institute of Technology (HIT), another “Seven Sons” member recognized for research in missile technology, satellite systems, and robotics, obtained a Super Micro configuration equipped with eight Nvidia A100 processors, per July procurement notices.
Both institutions appear on American export restriction lists, creating substantial legal obstacles for U.S. corporations attempting legitimate supply arrangements. Neither university provided responses to comment requests.
Legislative Pressure for License Suspension
Two United States senators addressed the matter Monday through correspondence to Commerce Secretary Howard Lutnick. Their communication recommends considering a temporary suspension of all export authorizations permitting advanced Nvidia processors and server platforms to reach Chinese entities or intermediary operations in Southeast Asian nations.
The Trump administration previously authorized sales of Nvidia’s H200 processors — offering superior performance compared to currently restricted products — to China under specific requirements. Industry sources disclosed this month that Nvidia has secured Beijing’s approval for H200 sales, though actual transactions have yet to receive confirmation.
China’s commerce ministry and the United States Commerce Department have both remained silent regarding Reuters’ inquiries for official statements.
