China’s AI model development raises questions over Nvidia’s role in circumventing US export controls

The US government has spent years trying to keep its most powerful AI chips out of Chinese hands. That strategy is looking increasingly like a screen door on a submarine. Chinese AI startup Moonshot AI reportedly trained its advanced Kimi K3 model, a 2.8 trillion parameter behemoth, using Nvidia’s high-end chips, including what appears to be the Blackwell or GB300 variants. White House OSTP Director Michael Kratsios stated on July 23 that Moonshot AI acquired servers equipped with GB300 chips in Thailand to develop its models, effectively sidestepping US export controls that have been in place since 2022-2023. How China keeps finding workarounds Moonshot AI isn’t the first Chinese company accused of getting its hands on restricted Nvidia hardware. DeepSeek, another major Chinese AI player, reportedly trained its latest model using Nvidia’s Blackwell chip in Inner Mongolia despite existing US bans on sales to China. That revelation surfaced back in February 2026. And Moonshot isn’t done. The company is reportedly pursuing additional Nvidia Blackwell chips for its upcoming Kimi K4 model, signaling that whatever channels exist for acquiring this hardware remain open for business. The ...