Key Points
- At least four Chinese academic institutions, including two with connections to the People’s Liberation Army, acquired Super Micro server systems containing export-restricted Nvidia A100 processors within the last twelve months.
- Federal authorities charged three individuals associated with Super Micro last week, including a company co-founder, alleging involvement in a scheme to illegally export $2.5 billion in advanced AI technology to China.
- Super Micro maintains it was an unwitting victim in the alleged smuggling operation and was not formally charged in the criminal indictment.
- A pair of U.S. senators have urged Commerce Secretary Howard Lutnick to immediately suspend all export authorization for cutting-edge Nvidia AI processors destined for China and Southeast Asian distribution channels.
- Beihang University and Harbin Institute of Technology — both institutions appearing on America’s export prohibition list — have been identified among the purchasing entities.
Shares of Super Micro Computer (SMCI) and Nvidia (NVDA) experienced significant declines Thursday following a Reuters investigation revealing that Chinese academic institutions with documented military affiliations successfully obtained Super Micro server systems loaded with export-controlled Nvidia AI processors.
Super Micro Computer, Inc., SMCI
According to procurement documentation examined by Reuters, four Chinese universities completed purchases of these server systems during the previous twelve-month period. Two of these educational institutions maintain established connections with China’s military apparatus.
Washington has prohibited the export of specific Nvidia processor models, including the A100 series, to Chinese entities since 2022. Policymakers cite concerns that sophisticated artificial intelligence hardware could enhance China’s military and defense technological capabilities.
These revelations emerge merely days following federal charges filed against three individuals tied to Super Micro — including one of the company’s founding members — who face allegations of orchestrating the illegal transfer of at least $2.5 billion in American AI technology to Chinese recipients.
The indictment did not list Super Micro as a defendant. Company representatives have maintained that the organization fell victim to an intricate illegal scheme perpetrated by the accused individuals.
Reuters’ investigation additionally uncovered that two other Chinese universities — one maintaining military research partnerships — initiated similar procurement attempts, though confirmation of completed transactions remains uncertain.
Super Micro representatives declined to provide commentary regarding the procurement documentation. Nvidia issued a statement affirming its ongoing collaboration with clients and federal authorities to ensure regulatory compliance.
Military-Connected Institutions Identified in Purchase Records
Beihang University, located in Beijing and recognized as one of China’s “Seven Sons of National Defense,” appears among the verified purchasers. Documentation dated March 16 indicates the institution acquired a machine-learning workstation constructed on a Super Micro platform incorporating four Nvidia A100 processors.
Harbin Institute of Technology (HIT), another “Seven Sons” establishment renowned for advanced research in missile technology, satellite systems, and robotics applications, obtained a Super Micro configuration equipped with eight Nvidia A100 units, according to procurement notices from July.
Both educational institutions appear on the United States export restriction list, creating substantial legal barriers for American technology firms seeking to supply them with controlled equipment. Neither university provided responses to media inquiries.
Lawmakers Demand Export License Suspension
Two United States senators issued correspondence to Commerce Secretary Howard Lutnick on Monday addressing the situation. Their letter advocates for an immediate moratorium on all export licenses permitting advanced Nvidia processors and server infrastructure to reach Chinese customers or intermediary distributors throughout Southeast Asia.
The Trump administration had previously authorized sales of Nvidia’s H200 processors — representing more advanced capabilities than currently restricted products — to Chinese buyers, subject to specified conditions. Industry sources disclosed this month that Nvidia has secured Beijing’s regulatory approval for H200 sales, although no confirmed transactions have been publicly documented.
Neither China’s commerce ministry nor the United States Commerce Department provided responses to Reuters’ requests for official comment.
