US export controls have impacted the black market by preventing leading Chinese AI companies from legally acquiring Nvidia chips. Consequently, third-party data center operators have emerged as key buyers, offering services to clients with lower compliance standards, including smaller tech and finance firms. Despite potential recovery in the market for compliant chips following the lifting of H20 restrictions, the demand for advanced products remains strong. Southeast Asia has become a nexus for Chinese firms obtaining restricted chips, prompting discussions in the US about augmenting export controls in the region to curb this trend.
The relaxation of H20 export controls allowed Chinese tech companies to buy older compliant chips, yet these products lag behind restricted B200 chips in performance.
Black market sales for Nvidia's B200 chips dropped significantly after H20 restrictions were lifted, indicating a shift in purchasing dynamics among Chinese tech firms.
Southeast Asia has become a critical region for Chinese companies seeking to acquire restricted chips due to its relative leniency in export controls.
Industry experts predict that US export controls may be expanded to Southeast Asian countries to restrict the flow of advanced AI technology to China.
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