Northwestern Polytechnical University, an institution with longstanding connections to China’s People’s Liberation Army (PLA), reportedly bought Nvidia Corp. (NASDAQ: NVDA) advanced H200 artificial intelligence (AI) chips last month, despite being included on a U.S. export blacklist. The purchase points to potential weaknesses in Washington’s efforts to restrict China’s access to cutting-edge technology.
The development comes amid increasing pressure on Nvidia and CEO Jensen Huang in the U.S. over his efforts to ease restrictions on AI chip exports to China. The scrutiny has intensified following reports that Huang was allegedly targeted in a Chinese intelligence operation, with the CEO admitting to an affair.
Chinese University Acquires Restricted Nvidia Chips
Last month, Northwestern Polytechnical University, part of China’s elite “Seven Sons of National Defense” network of universities specializing in defense-related research, bought two H200 chips for 874,700 yuan ($123,000), Reuters reported, citing a procurement notice published on its website on Oct. 21.
The university’s management school acquired the chips through Shaanxi Bosuan Network Technology, a third-party supplier, rather than buying them directly from Nvidia, the report added.
The Northwestern Polytechnical University obtained access to H200 chips and other high-performance Nvidia AI processors this year through five agreements with Chinese companies to rent computing capacity, the report noted. Nvidia’s H200 ranks among its most powerful processors for developing and operating advanced AI models.
Exports of the chips require U.S. government approval, with licences generally refused for entities on the country’s blacklist, including Northwestern Polytechnical University. The U.S. added Northwestern Polytechnical University to its Entity List in 2001 over alleged missile-proliferation and military research activities, tightening restrictions in 2019 by making export licence approvals for controlled U.S. technology generally subject to denial.
The Trump administration began allowing some H200 exports to China in January, but restrictions on Entity List institutions like Northwestern Polytechnical remained in place.
Beyond buying two H200 chips for its management school, Northwestern Polytechnical’s cybersecurity school signed two seven-month agreements in January, worth 441,700 yuan and 441,000 yuan, to rent servers equipped with eight H200 chips each for AI model fine-tuning and reinforcement-learning training. The university also leased computing capacity powered by eight Nvidia A100 chips and eight A800 chips, both restricted from export to Chinese entities. The H200 remains the most advanced processor mentioned in its procurement records, according to the report.
Nvidia, the Commerce Department and its Bureau of Industry and Security did not immediately respond to Benzinga’s request for comment.
Other Chinese universities also acquired restricted Nvidia processors. Shenzhen University purchased three H100 chips for 769,800 yuan in September, while Wuhan University of Technology purchased an H100-equipped server for 355,000 yuan in June and four A100 chips for another 344,000 yuan. Beihang University, part of China’s “Seven Sons of National Defense,” bought four A800 chips for 489,000 yuan in April. It has close ties to China’s aerospace and defense sectors, the report noted.
Spy Allegations and Personal Scandal Put Huang In Spotlight
Last month, it was reported that U.S. officials determined that Alice Huang, also known as Huang Le, was a Chinese intelligence asset who allegedly funneled information to Beijing while maintaining ties to Huang.
Over the weekend, Nvidia launched an independent investigation into whether foreign intelligence operatives had targeted its CEO. Huang separately acknowledged marital infidelity in a message to employees.
Meanwhile, President Donald Trump said the FBI was examining allegations involving Huang and the suspected Chinese intelligence operative, but publicly defended the chipmaker’s founder after speaking with him.
Huang is reportedly attempting to maintain business as usual amid fallout from his admitted extramarital affair. However, Gary Black has questioned whether his conduct warrants a much bigger reckoning.
Shares of Nvidia closed 5.47% lower at $168.89 on Tuesday; after hours, the stock rose about 0.94%. Year-to-date the stock has declined 9.44%.
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