Chinese Tech Giant Bypasses Sanctions to Acquire Advanced AI Chips
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Chinese Tech Giant Bypasses Sanctions to Acquire Advanced AI Chips
- A U.S. subsidiary of Inspur Group, Aivres Systems Inc., sold approximately $100 million in Nvidia AI chips to an Indonesian telecom firm in November 2025, despite its parent company being on a U.S. trade blacklist.
- Inspur Group was added to the U.S. Commerce Department's Entity List in March 2023 due to alleged ties to China's military modernization efforts.
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Despite U.S. sanctions aimed at restricting China’s access to advanced artificial intelligence technology, a Chinese tech giant has reportedly found a way to acquire high-end AI chips. Inspur Group, a major Chinese server manufacturer, was placed on the U.S. Commerce Department’s Entity List in March 2023 due to its alleged involvement in China’s military modernization. This designation restricts Inspur’s access to U.S.-origin technologies, including advanced CPUs and GPUs.
However, Aivres Systems Inc., a U.S. subsidiary of Inspur Group, has continued to operate and facilitate the sale of advanced AI chips. Aivres, which rebranded from Inspur Systems Inc. in May 2023, is one-third owned by Inspur’s parent company. In November 2025, Aivres reportedly sold 32 server racks containing approximately 2,300 Nvidia GB200 processors, built on Nvidia’s Blackwell architecture, to Indosat Ooredoo Hutchison, an Indonesian telecom operator. This deal was valued at around $100 million.
The chips, installed in a data center in Jakarta, Indonesia, are reportedly being used by INF Tech, a Shanghai-based AI firm with connections to Chinese universities. While U.S. export controls prevent Nvidia from directly dealing with blacklisted entities like Inspur, Aivres itself is not individually on any U.S. restriction list, allowing it to continue partnering with chipmakers such as Nvidia and AMD. This transaction highlights a potential loophole in sanctions, where U.S.-based subsidiaries of blacklisted foreign companies can still facilitate the acquisition of restricted technology through third-party arrangements. The U.S. government has expressed concerns about such circumvention, emphasizing its commitment to preventing adversaries from misusing American technology.