Key Takeaways
- Sharetronic Data Technology, based in Shenzhen, revealed documentation of $92 million in server purchases containing restricted Nvidia processors
- The hardware includes Nvidia’s H100 and H200 chips, which require US government authorization for sale to Chinese entities since 2022
- Following the revelation, Sharetronic’s shares plummeted nearly 10% on the Shenzhen exchange
- Both Super Micro and Dell have denied any business transactions with Sharetronic
- The revelation emerged on the same day federal authorities indicted a Super Micro co-founder for allegedly smuggling Nvidia processors to China
Sharetronic Data Technology, an AI-focused data center operator headquartered in Shenzhen, has revealed documentation showing the acquisition of 276 Super Micro servers equipped with Nvidia’s H100 and H200 processors. The combined value of these server systems reached 632 million yuan, equivalent to approximately $92 million.
Since 2022, Washington has prohibited the sale of H100 and H200 processors to Chinese buyers without explicit governmental authorization. These export controls were implemented to prevent China from advancing AI capabilities that could enhance its military applications.
Reporters from Bloomberg discovered the purchasing documentation within filings submitted to Chinese regulatory bodies. The invoices, bearing dates from May through June of the previous year, document transactions between Sharetronic and one of its subsidiary companies.
This disclosure occurred simultaneously with US prosecutors filing charges against Yih-Shyan “Wally” Liaw, a co-founder of Super Micro Computer, accusing him of orchestrating illegal shipments of Nvidia-equipped servers valued at $2.5 billion to Chinese territories. Liaw has entered a not guilty plea.
Sharetronic experienced a dramatic stock decline of nearly 10% in Shenzhen trading on Friday, positioning it as the most significant decliner on the MSCI Asia Index for that trading session.
Official Responses from Involved Corporations
Super Micro released a statement asserting it has no sales history with Sharetronic and does not recognize the company as a client. Dell similarly confirmed it discovered “no record of the alleged sales.” Nvidia stated that its client base operates under strict instructions prohibiting the delivery of controlled server systems without US governmental clearance.
Sharetronic issued its own statement claiming all hardware acquisitions originated from “legal and compliant channels.” However, the company avoided directly addressing questions regarding the invoice documentation and refused to elaborate on its equipment procurement processes, referencing client confidentiality obligations.
The organization additionally rejected claims of maintaining any commercial relationship with Super Micro.
The source of Sharetronic’s server acquisitions remains undetermined. The invoice documents do not specify the identity of the original vendor.
Sharetronic’s Connection to Nvidia’s Ecosystem
Sharetronic’s joint venture entity, Guangzhou Fcloud Technology, has secured designation as an Nvidia Cloud Partner, joining an exclusive group of just eight such organizations operating within China. This certification indicates Nvidia’s recognition of the company as qualified to deliver secure infrastructure for artificial intelligence operations.
Following receipt of this designation, Sharetronic publicly announced procurement plans totaling 32.2 billion yuan in hardware investments.
The invoice documentation additionally revealed a smaller procurement of 32 Dell PowerEdge XE9680 servers. Every hardware configuration compatible with these server models fell under US export restriction policies by the dates shown on the invoices.
Federal prosecutors have not publicly confirmed whether Sharetronic appears among the unidentified Chinese customers referenced in the criminal case against Super Micro.
