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In a strategic move to circumvent U.S. export restrictions, Chinese AI developers are tapping into global computing resources, bypassing the need to import high-end American chips like those from Nvidia directly into China. This workaround involves collaborating with brokers to access computing power abroad, often under the cover of anonymity techniques borrowed from the cryptocurrency sector.
The U.S. has imposed stringent export controls on advanced chips, particularly Nvidia’s powerful H100 chips, aiming to curb technological advancements in China that could have military applications. However, the demand for these chips in China remains high, leading to innovative solutions like those provided by Derek Aw, a former bitcoin miner turned entrepreneur. Aw has facilitated the setup of AI servers equipped with Nvidia chips in locations like Australia, serving Chinese companies remotely.
Aw’s approach involves setting up data centers overseas, like the one in Brisbane, Australia, where over 300 servers were installed to process AI tasks for a Beijing-based company. This method leverages the concept of renting computing power, a practice not new but made more complex by the need for anonymity due to U.S. regulations.
The transactions are often anonymized through smart contracts on blockchain platforms, where identities are concealed by cryptographic keys, and payments are made in cryptocurrencies. This setup allows Chinese companies to operate under the radar, sometimes through subsidiaries in countries like Singapore, further distancing themselves from direct U.S. oversight.
The decentralized GPU model has gained traction, especially after the cryptocurrency mining boom waned, freeing up computing resources worldwide. Platforms like io.net boast of providing unrestricted access to GPU power without the usual customer verification processes, appealing to Chinese entities looking to maintain privacy while accessing technology.
Joseph Tse, formerly with a Shanghai AI startup, highlighted the shift to these decentralized services after traditional cloud providers like Amazon Web Services became inaccessible due to U.S. restrictions. These platforms, while offering a workaround, come with risks like potential data breaches due to the inherent vulnerabilities in blockchain systems.
At industry events, such as one in Singapore, companies are openly marketing these decentralized GPU services, indicating a growing market for such solutions among Chinese developers who need less intensive computing power for smaller AI applications. However, for large-scale AI training, like that required for models similar to ChatGPT, these decentralized setups fall short, prompting efforts to create larger, more centralized computing clusters.
Edge Matrix Computing (EMC) is one example of a company expanding its network to include thousands of GPUs, including those under U.S. export controls, for more robust AI training capabilities. EMC and similar ventures are exploring bulk purchasing of chips like Nvidia’s H100, aiming to reduce costs for intensive AI computing.
The U.S. government, aware of these developments, is tightening its oversight. Senator John Kennedy has expressed concerns over the effectiveness of current export controls, urging stricter measures. The Commerce Department, in response, has been monitoring and attempting to clamp down on these illicit procurement networks.
Meanwhile, entrepreneurs like Aw continue to expand their operations, planning new clusters with the latest chip technologies, legally operating under the guise of foreign subsidiaries. This cat-and-mouse game between regulatory enforcement and technological circumvention highlights the complex landscape of international tech trade and the ongoing battle over technological supremacy.
Article generated from corporate media reports.
Mysterious “Skyquakes” Are Causing Strange “Booms” in the Sky, and Scientists Have No Explanation
by Michael Snyder
(End of the American Dream)—What is causing the extremely loud “booms” that people are hearing in the sky all over the world? We are being told that “skyquakes” are responsible, but scientists have no idea why these “skyquakes” are occurring. In some cases, the “skyquakes” cause such powerful shaking that…
The Biggest Sale on Long-Term Storage Beef EVER
by Sponsored Post
Let’s cut to the chase. Prepper All-Naturals is offering an unprecedented 40% off for it’s “Beef Steak” survival bags with promo code “steak40”. With a 25-year shelf life and a single ingredient (beef, of course), our most popular product is available for a very limited time with the biggest discount…
Seattle Is Ordered to Stop Blocking Illegal Alien Deportations in the Most Hilarious Court Decision Ever
by PJ Media
A federal court has just pooped in the oatmeal of the West Coast, Messed Coast™governors and local election officials suffering from acute cases of Trump Derangement Syndrome who think they can stop illegal alien deportations. And after this hilarious and thorough legal takedown from the 9th Circuit Court of Appeals,…
Illegal Alien Terror Suspect Found Dead in Cook County Jail Cell
by Slay News
An Islamic illegal alien has been found dead in his jail cell after being arrested on terrorism charges. According to CWBChicago, 22-year-old Sidi Mohamed Abdallahi was found dead at the Cook County jail in Illinois on Saturday. Abdallahi was arrested on felony terrorism and hate crime charges in October. He…
Trump’s Wild Bunch Is Ready for Action
by Frank Miele
If for no other reason than that it will elicit fear in the hearts of autocracy-phobics, I propose that Donald Trump’s second-term Cabinet be known as “The Wild Bunch.” The name is best known as the title of Sam Peckinpah’s classic 1969 western featuring a colorful cast of aging outlaws…
FAA Issues Flight Restrictions Over Questionable Drone Activity Near Trump’s Bedminster Golf Course
by Just The News
The Federal Aviation Administration (FAA) on Tuesday said that it has issued two flight restrictions on the area surrounding President-elect Donald Trump’s Bedminster golf club in New Jersey, following questionable drone activity. The drone sightings were first reported on Nov. 18, but have continued into this week, according to Fox…
Ex-FBI Agent Convicted for Stealing From Jan 6 Defendant During Raid
by Trending Politics
A former Houston-based FBI agent has been convicted of stealing valuables and cash while conducting searches. In one instance, the agent stole cash and silver bars from a non-violent January 6 defendant’s home. Nicholas Anthony Williams, 36, was indicted on January 31 in the Southern District of Texas. Williams, who…
Democrats, Media Elite Urge Biden to Pardon Trump’s Alleged ‘Enemies List’
by Breitbart
President Joe Biden should issue preemptive pardons to his political allies and those deemed to be on President-elect Donald Trump’s alleged “enemies list,” Democrats and their media allies believe. Delivering a preemptive pardon indicates an admission of guilt, although Democrats claim a preemptive pardon would only be intended to block…
Fani Willis Forced to Release All Communications With Jack Smith, J6 Committee
by Trending Politics
The Fulton County Superior Court has ruled against District Attorney Fani Willis, ordering her to disclose communications with Special Counsel Jack Smith and the House January 6 Committee. The decision, announced on Tuesday, follows a lawsuit brought by Judicial Watch, a conservative watchdog group, which accused Willis of violating Georgia’s…
Lindsey Graham Is the Warmongering NeoCon Leading the Charge to Upend Pete Hegseth
by JD Rucker
Pete Hegseth represents a shift away from the wokeness that has infected the United States military. This is possibly the biggest reason President-Elect Donald Trump tapped him to be the next Secretary of Defense and the vast majority of Republicans on Capitol Hill can support this, at least for the…
‘Where Are Black Democrats?’: Charles Payne Tells Personal Story to Call Out ‘Huge Double Standard’ of Biden Family
by Nicole Silverio, DCNF
(DCNF)—Fox Business host Charles Payne called out the alleged “huge double standard” of President Joe Biden’s family Tuesday by revealing that his brother, who struggles with a crack addiction, is currently serving a jail sentence. Payne said his brother, who is getting out of jail on Friday, is likely one…
Zelensky Admits Ukraine Can’t Retake All Its Land: ‘We Must Seek Diplomatic Means’
by Breitbart
Ukrainian President Volodymyr Zelensky conceded in an interview on Tuesday that Ukraine does not have “enough forces” to restore sovereignty over Russian-occupied Crimea and “must seek diplomatic means” to end the Russian invasion and regain its land. The state-run Ukrinform outlet reported that Zelensky described Crimea – which Russia colonized…
Ultra-Processed Foods: How Bad Are They for Your Health?
by Olivia Cook
(Natural News)—Despite the serious health risks associated with eating junk food, they remain the most consumed food products in many countries, particularly developed ones. But a review published in The BMJ, which studied 9.8 million people, warns that eating a lot of ultra-processed foods can increase your risk for 32 diseases. Among these are heart…
“Already Pretty Far Down the Line”: The Container Store Could File for Bankruptcy as Soon as Next Year
by Tyler Durden, Zero Hedge
(Zero Hedge)—As the retail apocalypse that started with Amazon and e-commerce continues, the latest victim is The Container Store. The retail giant could file for bankruptcy as soon as next year, according to the New York Post, who said the retailer is blaming its recent descent on “a weak housing…
Mysterious ‘Car-Sized Drones’ Over New Jersey Prompt FBI Investigation
by Zero Hedge
Several weeks of mysterious drone swarms over the skies of one New Jersey county near the military research and manufacturing facility Picatinny Arsenal have sparked concerns among residents and prompted an FBI investigation. “It’s kind of unsettling,” Mike Walsh, a Morris County resident who has spotted the drones on numerous…
UNESCO’s New Mission: Train Influencers About Combatting Online “Misinformation”
by Reclaim the Net
The UN Educational, Scientific and Cultural Organization (UNESCO) is now incorporating teaching influencers how to “fact check” into its activities. UNESCO claims that influencers have become “primary sources of news and cultural information” around the world – which prompted it to carry out a survey into how these online personalities…
