Key Takeaways
- At least four Chinese universities, including two with connections to the People’s Liberation Army, acquired Super Micro servers containing export-restricted Nvidia A100 chips within the last year.
- Federal authorities charged three individuals associated with Super Micro, including a company co-founder, last week for allegedly facilitating the smuggling of $2.5 billion in American AI technology to China.
- Super Micro maintains it was victimized by the smuggling operation and was not directly named in the criminal indictment.
- Two United States senators have urged Commerce Secretary Howard Lutnick to halt all export licenses permitting advanced Nvidia AI chips to reach China and intermediary nations in Southeast Asia.
- Beihang University and Harbin Institute of Technology — both designated on the U.S. export restriction list — are confirmed among the purchasing institutions.
Shares of Super Micro Computer (SMCI) and Nvidia (NVDA) experienced significant declines on Thursday following a Reuters investigation revealing that Chinese universities with military connections successfully obtained Super Micro servers containing export-controlled Nvidia AI processors.
Super Micro Computer, Inc., SMCI
According to procurement records examined by Reuters, four Chinese academic institutions purchased these servers during the previous twelve months. Two of these universities maintain established ties with the PLA.
Since 2022, the United States government has imposed restrictions on exporting specific Nvidia processors, including the A100 model, to China. These limitations stem from concerns that sophisticated AI chips could enhance China’s military technological capabilities.
This development arrives less than a week after federal prosecutors charged three individuals with Super Micro connections — one being the company’s co-founder — with allegedly orchestrating the illegal export of approximately $2.5 billion in American AI hardware to China.
Super Micro was not directly implicated in the federal indictment. Company representatives have stated they were victims of an intricate smuggling operation executed by these charged individuals.
Reuters’ investigation also uncovered that two other universities — one with documented military associations — attempted comparable purchases, though confirmation of completed transactions remains unclear.
Super Micro representatives declined to provide commentary regarding the procurement documentation. Nvidia issued a statement emphasizing its ongoing collaboration with customers and federal authorities to ensure regulatory compliance.
Military-Connected Universities Identified in Purchase Records
Beihang University in Beijing stands among the confirmed purchasers. The institution is classified as one of China’s “Seven Sons of National Defense.” Documentation dated March 16 reveals it acquired a machine-learning workstation constructed using a Super Micro platform equipped with four Nvidia A100 processors.
Harbin Institute of Technology (HIT), another “Seven Sons” institution recognized for advanced research in missile systems, satellite technology, and robotics, obtained a Super Micro configuration containing eight Nvidia A100 chips, according to procurement notices from July.
Both educational institutions appear on the United States export restriction list, creating substantial legal barriers for American companies attempting to supply them with controlled technology. Neither university provided responses to media inquiries.
Congressional Leaders Demand Export License Suspension
Two United States senators addressed the situation on Monday by submitting correspondence to Commerce Secretary Howard Lutnick. Their letter recommends implementing a temporary suspension of all export licenses that permit advanced Nvidia processors and server systems to reach China or intermediary distributors throughout Southeast Asia.
The Trump administration had previously authorized sales of Nvidia’s H200 chips — which offer superior performance compared to currently restricted models — to China, subject to specific compliance conditions. Information released this month indicates Nvidia has secured approval from Beijing authorities to distribute the H200, although no verified transactions have been documented to date.
China’s commerce ministry and the United States Commerce Department have not responded to media requests for official statements.
