Chinese AI Startup Accesses Banned GPUs via Telecom Loophole

A recent investigation by the Wall Street Journal has uncovered that a Shanghai-based AI startup named INF Tech has accessed 2,300 banned Nvidia Blackwell GPUs by exploiting a loophole in telecommunications regulations.

INF Tech, which focuses on developing AI solutions for finance and healthcare, managed to secure these GPUs through a complex supply chain involving a U.S. company and an Indonesian telecommunications firm.

According to the report, Nvidia sells its latest chips to Aivres, a partner that builds AI servers, which is believed to have ties to Inspur, a Chinese company previously blacklisted by the U.S. government for its military connections.

Although the ownership structure of Aivres is not publicly disclosed, its status as a U.S.-based company means it can navigate around export restrictions if it complies with U.S. export rules. The Indonesian telecommunications company, Indosat Ooredoo Hutchison, acquired 32 Nvidia GB200 server racks from Aivres, each containing 72 Blackwell chips, totaling 2,304 GPUs.

This deal, valued at approximately $100 million, was reportedly facilitated by Aivres finding a customer for Indosat, leading to INF Tech's involvement. The purchase and installation of these servers in Jakarta were completed as of October 2025.

Notably, none of the parties involved, including Indosat and INF Tech, are listed on the U.S. Entity List, complicating any claims of illegality. However, concerns remain regarding the implications of Chinese companies accessing advanced American technology.

Critics argue that even if these companies do not currently collaborate with the Chinese Communist Party or its military, the Chinese government can compel cooperation from any corporation within its jurisdiction.

The Biden administration's AI Diffusion Rule could have potentially blocked this transaction, but it was not implemented during Trump's presidency. Nvidia has advocated for more lenient export controls, suggesting that allowing access to its hardware is crucial for maintaining U.S. technological leadership.

A spokesperson for Nvidia stated that their compliance team thoroughly evaluates partners before shipments are made. Furthermore, INF Tech has confirmed that their research does not involve military applications and that they adhere to U.S. export controls.

Indosat's CEO, Vikram Sinha, emphasized that their operations comply with regulations for all customers, whether they are U.S. or Chinese entities. This intricate interplay between telecommunications infrastructure, regulatory frameworks, and market dynamics highlights the complexities of technology access in a globally interconnected environment.