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NVIDIA denies Latin America chip smuggling route to China

Created at 11 Jun · 6:15 PM2 sources↑ Market-relevant2 events
IN SHORT

NVIDIA's Latin America executive Marcio Aguiar denied allegations that the region is used to smuggle restricted AI chips to China. Meanwhile, Huawei is considering deploying its Ascend AI chips in Latin America.

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Key Numbers

one to two yearsUS lead over China in AI development urged by Anthropic

Who's Involved

NVIDIA
Chip manufacturer facing export control pressures
Marcio Aguiar
NVIDIA's top executive for Latin America
Anthropic
American AI model maker alleging chip smuggling
Huawei Technologies
Chinese tech firm studying Ascend AI chip deployment in Latin America
Mark Chen
President of Huawei Cloud Latin America
Alibaba
Chinese tech firm and buyer of Ascend 950 chips
ByteDance
Chinese tech firm and buyer of Ascend 950 chips

↳ Why This Matters

The statements highlight the intensifying geopolitical competition in AI technology, with NVIDIA denying illicit chip flows while Huawei explores expanding its advanced hardware presence in regions targeted by US suppliers.

Key facts

  • NVIDIA's Latin America executive Marcio Aguiar denied allegations of chip smuggling to China via the region.
  • The executive stated NVIDIA refuses large chip orders from unfamiliar countries without proper documentation.
  • AI firm Anthropic previously alleged Chinese labs used smuggled processors for AI advancements.
  • Huawei is considering deploying its Ascend AI chips in Latin America for cloud and AI services.
  • Huawei's Ascend 950 chips are in early deployment stages in China, with buyers including Alibaba and ByteDance.

NVIDIA's top executive for Latin America, Marcio Aguiar, has denied that the region is being used as a route to smuggle restricted chips into China. His comments follow allegations by AI firm Anthropic that Chinese laboratories have utilized smuggled processors to achieve recent advancements in artificial intelligence.

Aguiar acknowledged that export control pressures are significant, noting that NVIDIA scrutinizes large chip orders, especially from unfamiliar countries, and refuses sales if adequate documentation for data centers is not provided. These statements address concerns raised in a mid-May paper by Anthropic, which urged the U.S. to maintain a one-to-two-year lead over China in AI development, citing chip smuggling and remote data center rentals as methods used by Chinese labs.

In a separate development, Huawei is considering deploying its latest Ascend artificial intelligence chips within its cloud and AI services in Latin America. Mark Chen, president of Huawei Cloud Latin America, confirmed this possibility in an interview, though he described the Ascend 950 chip generation as being in the early stages of deployment. Chinese AI firms, including Alibaba and ByteDance, are already using the Ascend 950 chips, and DeepSeek is running its models on the hardware.

Frequently asked questions

Marcio Aguiar denied that Latin America has served as a corridor for smuggling restricted AI chips into China.

AI firm Anthropic alleged that Chinese labs have used smuggled processors to advance their AI capabilities.

NVIDIA questions the purpose and destination of large chip orders, especially from unfamiliar companies, and refuses sales if documentation is insufficient.

Huawei is studying whether to deploy its newest Ascend artificial intelligence chips within its cloud and AI services in the region.

What Happens Next

01US and China will continue navigating AI technology rivalry and export controls.
02AI companies like Anthropic will likely monitor chip access and AI development.
03NVIDIA will continue vetting potential buyers for large chip orders.
04Huawei will assess the feasibility of deploying Ascend AI chips in Latin America.

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Cadence

How It Developed

NVIDIA's Latin America executive Marcio Aguiar denied the region is used for chip smuggling to China.
The executive acknowledged that export control pressures are significant.
NVIDIA refuses sales for large chip quantities without adequate documentation.
AI firm Anthropic alleged Chinese labs used smuggled processors to advance AI.
Huawei is studying the deployment of its Ascend AI chips in Latin America.
Huawei's Ascend 950 family chips are in early deployment stages in China.

Sources

T1
NVIDIA denies Latin America role in chip smuggling as US-China AI rivalry reaches BrazilSouth China Morning Post
T1
Huawei is considering deploying Ascend AI chips in Latin America, cloud chief saysSouth China Morning Post

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