[HN Gopher] DeepSeek uses banned Nvidia chips for AI model, repo...
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       DeepSeek uses banned Nvidia chips for AI model, report says
        
       (Original is https://www.theinformation.com/articles/deepseek-
       using-banne... but hardwalled)
        
       Author : goodway
       Score  : 268 points
       Date   : 2025-12-10 16:34 UTC (6 hours ago)
        
 (HTM) web link (finance.yahoo.com)
 (TXT) w3m dump (finance.yahoo.com)
        
       | cultofmetatron wrote:
       | this is revenge for stealing their silkmoths isnt it?
        
         | smileson2 wrote:
         | the american century of humiliation begins
        
           | inamorty wrote:
           | The opium will be full of sugar and preservatives though.
        
             | meindnoch wrote:
             | Or fentanyl!
        
         | mullingitover wrote:
         | and their proprietary tea strains
         | 
         | and forcing them to allow opium to be sold in their country
         | 
         | and forcing them to give up major port cities and open up trade
         | against their wishes
         | 
         | Honestly whenever China gets around to getting its served-
         | extremely-cold revenge for all the savagery committed against
         | it in the 19th and 20th centuries, some chips are going to be
         | the least of everyone's problems.
        
           | codedokode wrote:
           | Also, porcelain, paper and gunpowder. And maybe (don't
           | remember exactly), magnetic compass.
        
           | hinkley wrote:
           | I think that was the British? We are just getting over hating
           | them ourselves.
        
             | dontwannahearit wrote:
             | A quick read of some British press and you'll realize that
             | the British are going through their own self-hate moment,
             | so everyone is aligned.
             | 
             | This is what living in the ashes of an empire does to you.
             | 
             | Will come for the USA in time.
        
               | hinkley wrote:
               | Already ahead of you there sport. November 2016.
        
       | bilekas wrote:
       | I don't think anyone is surprised by this.. And I'm almost
       | certain nothing will happen. When manufacturing is next door to
       | you, you'll find a way to get your hands on chips.
        
         | stronglikedan wrote:
         | > And I'm almost certain nothing will happen.
         | 
         | The Chinese government has done more for less so I wouldn't be
         | so certain.
        
           | kllrnohj wrote:
           | This isn't a Chinese government ban, though. It's a US export
           | restriction, not a Chinese import restriction. So why would
           | the Chinese government do anything at all?
        
         | embedding-shape wrote:
         | > And I'm almost certain nothing will happen
         | 
         | What realistically could happen? Nvidia is already prohibited
         | from selling their GPUs to China, I guess if you wanted it to
         | really stop, you'd need to prohibit Nvidia from selling GPUs in
         | any other country but the US, and require some sort of
         | government controlled license to be able to buy it inside the
         | US. Neither of which sound like realistic options.
         | 
         | So what could anyone really do, to "solve" this "problem"?
        
           | Davidzheng wrote:
           | didn't the US just allow H200s to China last few days btw
        
           | rvnx wrote:
           | License leases, this is what they can do.
           | 
           | You log into the Nvidia Enterprise Portal and download a
           | license file that is temporary valid (e.g. 7 days) and bound
           | to the specific serial numbers.
           | 
           | You transfer that file to your local license (DLS) server.
           | 
           | It does not need to be permanently connected to the internet,
           | but it needs to be refreshed periodically.
           | 
           | Your local server now holds the tickets that the GPUs need to
           | use to run (obviously checked by the GPU itself, not on a
           | driver-level, though driver could be a first step).
           | 
           | https://docs.nvidia.com/license-system/dls/index.html
           | 
           | If an account is suspected of violation, they get suspended
           | and need to pass the KYC again.
           | 
           | It's not perfect (as violators can use shell companies), but
           | it is relatively elegant. In case of shell companies, they
           | can get caught one day or another.
           | 
           | Regular users or those who don't need air-gapped network can
           | just stay online and the lease automatically renew in the
           | background. Friction-less.
           | 
           | Added benefit: nobody is going to try to steal your cards
           | 
           | Minus: enshittification of the world in the name of politics,
           | and Nvidia will lose sales, and backfire at the US economy
           | 
           | I hope they don't plan it
        
             | totallymike wrote:
             | A government-funded party would likely have an exploit or
             | jailbroken firmware up and run in in days, if not sooner
        
             | kevmo314 wrote:
             | A new opportunity for my new business: a datacenter right
             | off the Chinese border with a VPN tunnel into China!
        
               | rvnx wrote:
               | Better run "Super AI company LLC" from Singapore,
               | download the tickets, send them by email, and run it in
               | China
        
             | nish__ wrote:
             | This guy worked for Microsoft. I can tell.
        
       | strbean wrote:
       | The phrasing "chips that are banned in the country" seems
       | completely inaccurate. These are chips that the US does not allow
       | to be exported to China. We do not have the power to ban anything
       | in China, that's up to the Chinese government.
        
         | saubeidl wrote:
         | Which they did! https://techcrunch.com/2025/09/17/china-tells-
         | its-tech-compa...
        
           | Quothling wrote:
           | Didn't China ban two processors for like 140 companies? It
           | wouldn't be unlike China to ban modern Nvidia chipsets from
           | Alibaba and similar while allowing Deepseek to do what they
           | want. To win at both advancing domestic semiconductor
           | development and also AI.
        
         | nemomarx wrote:
         | I thought China also wanted them banned to dogfood domestic
         | chips?
        
         | blibble wrote:
         | it's the standard USian view that their laws apply worldwide
        
           | hinkley wrote:
           | I learned it by watching you, Dad.
           | 
           | American Imperialism is European Imperialism 2.0.
        
       | mongrelion wrote:
       | I recommend everyone to watch GamersNexus' documentary on the
       | NVIDIA AI GPU black market. They explain how companies like
       | DeepSeek can get a hold of chips that are otherwise banned by the
       | US government to export to China
       | 
       | https://www.youtube.com/watch?v=1H3xQaf7BFI
        
         | embedding-shape wrote:
         | Yeah, or just jump unto Alibaba and Ebay from any neighboring
         | country to China and see for yourself how easy it would be to
         | buy a GPU then transport yourself ~500m and now be within China
         | with these GPUs.
        
           | whimsicalism wrote:
           | I think you are overestimating the ease of getting
           | hopper/blackwell from alibaba or ebay.
        
             | embedding-shape wrote:
             | Yeah? Tried Ebay Singpore as a first try, seems like there
             | is plenty of stuff:
             | https://www.ebay.com.sg/sch/i.html?_nkw=gpu+blackwell
             | 
             | Edit: just for fun (and actual neighbor of China), tried
             | Ebay India too, seems not-impossible: https://www.ebay.com/
             | sch/i.html?_nkw=blackwell+gpu&_sacat=0&...
        
               | sofixa wrote:
               | > and actual neighbor of China), tried Ebay India too
               | 
               | Eh, you'd have to cross the Himalayas and go through what
               | is kind of a military zone.
               | 
               | Kazakhstan and Vietnam are more suitable candidates, but
               | neither has actually good infrastructure connectivity to
               | China.
        
         | the_pwner224 wrote:
         | I was just selling my RTX 4090 on Ebay recently and got a ton
         | of bids from Chinese accounts. The winner ($2,325) had
         | Australia set as the country on their profile, but a Chinese
         | name on the account, and the order shipping address was to a
         | different Chinese name (to a regular single-family house in
         | Delaware). Most bidders straight up had China as their profile
         | country.
         | 
         | So my 4090 (24 GB) is probably going to get turned into a 48/96
         | GB VRAM frankenstein in a Chinese chop shop. I haven't watched
         | the full 3.5 hour documentary you linked but from the first few
         | minutes, it seems quite interesting. And covers this exact
         | thing.
         | 
         | Edit: Again, I checked the address, it was a house, not a
         | freight forwarder warehouse. And if it was actually going to
         | AU, the forwarder would be on the west coast in CA/WA, not east
         | coast (had another order go to Thailand with a forwarder in SF.
         | And Miami is the big hub for South America). For legit freight
         | forwarding they also wouldn't have different names on the
         | account & shipping address. As the parent comment's YT video
         | describes, these are often just normal Chinese-Americans or
         | international students who do this to make a bit of extra
         | money.
        
           | BigTTYGothGF wrote:
           | People with Chinese names do sometimes live in Delaware.
        
             | Tostino wrote:
             | With their profile in Australia?
        
               | yardstick wrote:
               | While this is likely what the op was suggesting,
               | 
               | I would like to point out that in Australia and NZ, it
               | can be a massive pain to find someone who will ship
               | internationally.
               | 
               | Normally this is for things like Amazon US, and other US-
               | based companies. There are services[1][2] that advertise
               | virtual postal addresses in your purchase-country where
               | they'll box and ship it to you.
               | 
               | So yes, a Chinese name based in Australia with a shipping
               | address in the US isn't immediately a red flag. Lots of
               | Chinese in Australia and NZ, and lots of people here like
               | to use shipping services like this.
               | 
               | 1. https://www.nzpost.co.nz/tools/you-shop
               | 
               | 2. https://www.choice.com.au/shopping/online-
               | shopping/buying-on... (Scroll to bottom)
        
               | fn-mote wrote:
               | > Chinese name based in Australia with a shipping address
               | in the US isn't immediately a red flag
               | 
               | And a good thing, too, or I would be concerned about
               | posting that I knew it was going somewhere forbidden.
        
             | square_usual wrote:
             | And Australia; ~5% of Australia's population is Chinese
             | origin.
        
             | jhfdbkofdchk wrote:
             | Do they all live at the same address of the overseas
             | freight forwarder too? I've sold stuff on eBay to someone
             | in Europe who had me ship to the same address in Delaware.
             | I was confused so I googled the address and turned up the
             | freight forwarding service.
        
               | secret-noun wrote:
               | This has happened to me a couple of times with eBay
               | sales.
               | 
               | Is it safe to transact with people who use freight
               | forwarders in your experience? Do you lose any
               | protections?
               | 
               | Out of fear, in my cases, I cancelled the auctions.
               | 
               | On second thought though, I wonder if it's actually the
               | buyer using the service that is more at risk
               | (introduction of 3rd party, more complex delivery,
               | probably impossible to return, etc)
        
             | tirant wrote:
             | Sometimes. But the vast proportion live in China. Like 9000
             | vs 1.4 Billion.
        
             | kube-system wrote:
             | If you are selling in the US, and an account with a primary
             | address overseas buys your item and uses a US shipping
             | address, you are likely shipping to a package forwarder.
             | These services are common because many people and
             | businesses in the US only ship to the US.
             | 
             | I have my eBay account set this way, and I still get bids
             | from overseas accounts -- I always Google the shipping
             | address, 100% of the time it has been a package forwarder.
        
           | Lammy wrote:
           | > So my 4090 (24 GB) is probably going to get turned into a
           | 48/96 GB VRAM frankenstein in a Chinese chop shop
           | 
           | Cool, though. Where can I buy one? :p
        
             | robotnikman wrote:
             | last I checked you can find these cards with more VRAM on
             | aliexpress and ebay.
        
           | hinkley wrote:
           | I got a work laptop stolen (in my favorite bag, which they
           | don't make anymore) and found out from the police that
           | there's a chain from fences for drug addicts to criminal
           | organizations in the Middle East. They've found American
           | hardware there a number of times. Little harder to steal a
           | desktop graphics card in general, but breakins happen.
        
           | txdv wrote:
           | Can't they do it here? or will the authorities go after these
           | kind of upgrades?
        
         | brendoelfrendo wrote:
         | One of the keys being, of course, that the Chinese government
         | doesn't care. Yeah it might require mules bringing the GPUs
         | into China but once they're in China, no one is breaking any
         | laws. Of course DeepSeek is using these GPUs! It's not illegal
         | for them to do so!
        
           | whatsupdog wrote:
           | Chinese government recently banned Chinese companies from
           | buying Nvidia chips.
        
             | berdario wrote:
             | Yup, the change was in the news in September
             | 
             | https://arstechnica.com/tech-policy/2025/09/china-blocks-
             | sal...
        
               | hedora wrote:
               | That's not a ban of nvidia chips though. It's for a few
               | of the biggest companies, and is specifically telling
               | them not to buy a made-for-china SKU:
               | 
               | > The Cyberspace Administration of China (CAC) told
               | companies, including ByteDance and Alibaba, this week to
               | end their testing and orders of the RTX Pro 6000D,
               | Nvidia's tailor-made product for the country, according
               | to three people with knowledge of the matter
        
           | lenerdenator wrote:
           | The US government doesn't really care either.
           | 
           | We have someone in the comments section talking about how
           | they encountered a bunch of suspicious bidders on their GPU
           | auction. That's not what happens when people care about being
           | potentially investigated for breaking export rules.
        
             | pests wrote:
             | > suspicious bidders
             | 
             | A person with a Chinese name living in Delaware? Gasp.
        
         | hinkley wrote:
         | Where does nvidia manufacture those chips?
        
           | vel0city wrote:
           | The Republic of a China, not the People's Republic of China.
           | You might not legally be able to identify the difference in
           | your jurisdiction.
        
             | hinkley wrote:
             | Right. I am a TSMC shareholder. I know this story.
        
       | ok123456 wrote:
       | CIA disinformation campaigns notwithstanding, maybe accept global
       | competition, open-source models, and the fact that whatever
       | advantage OpenAI had was fleeting and mostly squandered at this
       | point. The tendency of the rate of profit to fall is especially
       | brutal if you've never made a profit.
        
       | bee_rider wrote:
       | It seems pretty difficult to prevent two other countries from
       | trading, especially when it is sort of low-volume (I mean how
       | many boats full of GPUs was this? It isn't like oil or something,
       | where we can see the infrastructure to consume it via satellite).
        
       | Shin-- wrote:
       | Good. Unsurprising (well, known), but good. In fact, the world
       | would be a better place if the US would not use their influence
       | to try to keep other countries down.
        
         | watwut wrote:
         | China banned them tho.
        
           | Matl wrote:
           | China banned them AFTER the US first banned them and then
           | unbanned them and a series of unfriendly trade moves by the
           | US.
           | 
           | This discussion where China is always purely dishonest, bad
           | etc. without any context is honestly lame.
           | 
           | The Chinese ban is largely a political move designed to
           | signal that they're not going to be pushed around. They
           | pretty much know companies are using them, (and H100 in
           | Thailand etc.) but as long as it sends a message and over
           | time incentives domestic development, (which it does), then
           | good as far as they're concerned.
           | 
           | It's certainly better than the EU just rolling over for King
           | Donald, which as a EU citizen is embarrassing.
        
             | sofixa wrote:
             | > It's certainly better than the EU just rolling over for
             | King Donald, which as a EU citizen is embarrassing.
             | 
             | I'm seeing it more as buying time thing. In sourcing as
             | much as possible in the EU is already in progress, as well
             | as various trade agreements with different countries and
             | economic blocs. That doesn't mean it isn't preferable to
             | play nice with the demented guy to make the transition less
             | painful in the short term.
        
         | tonyhart7 wrote:
         | "In fact, the world would be a better place if the US would not
         | use their influence to try to keep other countries down."
         | 
         | acting like china wouldn't doing the same thing to other
         | country if they ever weld such position
         | 
         | every great power would do the same thing to defend their
         | position, its not unique to the US. only because current
         | incumbent power is we see things this way
        
           | kelseyfrog wrote:
           | If I don't make the world worse then someone else will is
           | such a depressing state of affairs.
           | 
           | If that's the mentality, then what's worth fighting over? We
           | should give up because we don't even deserve the rewards.
        
             | rangestransform wrote:
             | we shouldn't give up securing resources for ourselves, our
             | loved ones, and our nations
        
             | tonyhart7 wrote:
             | "If I don't make the world worse then someone else will is
             | such a depressing state of affairs."
             | 
             | its not make the world worse but simply take what matters
             | to your group
             | 
             | does that evil??? hmmm noo, people call it patriotism
             | 
             | what do you think entire US military base reside in 80% of
             | the world btw????? does US military doing picnic on these
             | country?????
             | 
             | I can tell you answer but some people didn't want to
             | confront reality and would be downvote me to hell
             | 
             | but in the end someone gotta to do it
        
           | epolanski wrote:
           | When china will do it, I'll judge them for it.
        
         | pembrook wrote:
         | I agree that a fair playing field for everyone would be the
         | ideal state.
         | 
         | But let's not pretend China doesn't use their influence to keep
         | other countries down as well, and let's not pretend they allow
         | a fair playing field for foreign competitors domestically
         | either.
         | 
         | The US would not have imposed these targeted sanctions if China
         | simply wanted to fairly compete in the marketplace.
        
           | dlisboa wrote:
           | The US sanctions have nothing to do with free market
           | maximalism. I thought that was quite obvious historically and
           | specially now. They've imposed tariffs on literally every
           | country on the planet.
        
             | verdverm wrote:
             | Tariffs are applied to countries that we are "ripping off",
             | if King Donald's definition is used consistently for every
             | country. If we had a surplus, you still get a 10% tariff
             | that Americans have to pay...
        
             | pembrook wrote:
             | It's my fault for wading into a political discussion on a
             | forum of react developers. That's on me.
             | 
             | But the "banned" chips this article is referring to and the
             | original chips act is from the Biden administration, having
             | nothing to do with the current tariff climate.
             | 
             | Also, obviously US actions have nothing to do with free
             | market maximalism. Nor does China feel that way either.
             | Which is my point.
        
         | remarkEon wrote:
         | It's debatable whether it's a better use of US power and
         | resources to try to stop PRC from obtaining these chips versus,
         | say, sinking the Chinese fishing fleets actively wrecking
         | entire ecosystems. I probably agree with you that on balance
         | working on the later problem has a higher long term ROI.
        
         | sneak wrote:
         | Don't hate the player, hate the game.
        
           | esafak wrote:
           | The player has the power to change the game.
        
             | nish__ wrote:
             | That is just not true. The referees have the power to
             | change the game. The fans have the power to change the
             | game. The owners and the commissioners have the power to
             | change the game. The players have no power at all.
        
               | spencerflem wrote:
               | I don't see how that follows
        
         | xadhominemx wrote:
         | China has promised to wage war and forcibly subjugate Taiwan, a
         | democratic ally and critical trade partner. If China backed off
         | Taiwan for a few decades, I think the US would drop export
         | controls.
        
           | dialectical wrote:
           | >If China backed off Taiwan for a few decades, I think the US
           | would drop export controls.
           | 
           | Total historical illiteracy. if only there was an island
           | nation immediately southeast of the US we could look to for
           | information on how America treats countries that try the
           | whole "back off" thing
        
       | codedokode wrote:
       | Sanctions just slightly increase the cost of obtaining an item,
       | but don't make it impossible. Electronic components can be
       | bought, oil can be sold, ChatGPT can be used via OpenRouter,
       | sanctioned banks publish their apps under guise into App Store,
       | etc. When there are 200 countries in the world, and money
       | involved, you can get anything.
       | 
       | Sanctioned goods could be used to spread propaganda though,
       | imagine, for example, if installing a NVIDIA GPU driver required
       | answering questions about Tiananmen square incident.
        
         | amarant wrote:
         | Imagine the correct answer being "what incident?"
        
         | kspacewalk2 wrote:
         | I agree, except with the word "slightly". It can be so
         | significant that this increased cost/friction is the very
         | mechanism of the sanctions' effectiveness. Is it possible to
         | police the Russian oil shadow fleet to extinction? Maybe, but
         | even without doing so you can impose a decent haircut on their
         | profits by issuing scary-sounding press releases and leaving it
         | at that.
        
           | codedokode wrote:
           | Increased costs might be a factor in a competing commercial
           | market, but for military purposes, you buy the components no
           | matter the price or search for an alternative (China is now
           | making lot of components - for example, resistors,
           | transistors, logic chips - I have several 74HC chips of
           | Chinese origin, and they are very cheap). Also, there are
           | thousands ships and no legal basis for "policing" them in
           | open sea.
        
         | littlecranky67 wrote:
         | This. And it should be obvious. Drugs are banned and illegal in
         | almost every country, yet they reach the US in vast amounts.
         | Why would a ban on GPUs suddenly work - especially since owning
         | a truckload of GPU is perfectly legal in most countries.
         | Smuggling them to where the demand is, is probably easier than
         | smuggling drugs.
        
           | codedokode wrote:
           | Maybe criminal cartels should switch to GPU trafficking?
        
             | bad_haircut72 wrote:
             | By now most Mafias of the world are probably trying to
             | train their own models
        
             | sofixa wrote:
             | Mexican cartels were branching out into the avocado trade,
             | so why not.
        
               | zipy124 wrote:
               | Cartels, mafias and other criminal organisations have
               | been involved in other industries for many generations
               | now. Money laundering requires legitimate businesses and
               | if that business happens to turn a profit. That's even
               | better. Just look at the construction industry in new
               | York or Italy many decades ago.
        
           | stackskipton wrote:
           | It is easier then smuggling drugs because US is not making it
           | difficult to sidestep the sanctions. Hey, this random house
           | in Delaware is buying a ton of GPUs, should we investigate?
           | Nah, our donors don't actually want Nvidia stock to go down
           | so ignore it.
        
             | cj wrote:
             | I don't think the root problem is political corruption or
             | donors.
             | 
             | If anything, the hundreds of millions of dollars from AI
             | lobbyists would overwhelmingly support anything that would
             | prevent anyone outside of the US getting their hands on
             | computer chips.
             | 
             | The AI lobby in support of banning export of chips is way
             | greater than anyone lobbying the opposite.
             | 
             | > should we investigate? Nah, our donors [...]
             | 
             | The US government is a very slow moving bureaucracy. Slower
             | to adapt than the slowest moving large public company.
             | 
             | The GPU chip issue came about suddenly, out of the blue,
             | and caught the government unprepared. When that happens, it
             | typically takes government years to catch up and figure out
             | how to adapt.
             | 
             | Even in cases where incentives are aligned in favor of the
             | government's position, they still take forever to roll out
             | meaningful change with effective enforcement - e.g.
             | charging sales tax on software business, remember that
             | Supreme Court case years ago? Or remember all the concern
             | about engineer salaries being de-categorized as R&D? These
             | are examples that are legally decided but gov is incredibly
             | slow to enforce. The Wayfair supreme court case was back in
             | 2018, right? Many years later, most SaaS companies are
             | still getting away with not charging sales tax. Certain
             | states are just now stating to enforce, 7 years later.
        
             | dlisboa wrote:
             | Investigate and do what? It's not illegal to buy GPUs, the
             | sanctions have no power in this space. Who could a law even
             | hurt here, the seller who is a single individual? If they
             | made it illegal to individually export them out of the US
             | the Chinese could just buy them somewhere else.
        
               | stackskipton wrote:
               | You can investigate buyers who have anomalous purchase
               | patterns for sanction violations and convict them. DEA
               | commonly looks at narcotic purchases by legal buyers for
               | indications they might be funneling it to illegal market
               | and investigates. NVidia could report "Hey, we are seeing
               | massive purchases from entities we didn't expect so you
               | might want to look into that"
        
           | rchaud wrote:
           | The illegality of something and the enforcement of that
           | illegality can be mutually exclusive. Iran had sanctions
           | placed on them after the 1979 revolution, but the US funneled
           | arms to them anyway to raise money to ovethrow the Nicaraguan
           | government [0]. Cocaine is illegal but the CIA trafficked it
           | anyway to again raise money to topple the Sandinistas [1].
           | 
           | [0] https://www.history.com/articles/iran-contra-
           | affair#Oliver-N...
           | 
           | [1] https://www.cnn.com/US/9811/03/cia.drugs/
        
           | nyolfen wrote:
           | great thinking, that must be why the ccp doesn't care about
           | this policy
        
         | mcdow wrote:
         | This is tangential but the whole Tiananmen Square thing is kind
         | of odd. When I visited China many people were more willing to
         | discuss it than I had imagined. Some spoke about it
         | unsolicited. It's a tourist destination you have to buy tickets
         | for. It's rather subtle what can and cannot be discussed
         | relating to it. Those I spoke to about it told me that most
         | people have a good understanding of what happened, and many
         | people speak negatively of the CCP. You just can't do it if you
         | have a major platform (e.g. you're Jack Ma or you are an LLM).
         | 
         | Not to discount how negative free speech restrictions are, but
         | I'm not so sure how effective that particular propaganda
         | campaign would be.
        
           | whimsicalism wrote:
           | A few things: In tourist areas they will feel comfortable
           | talking about the protests/reprisal because they get
           | inundated by American tourists wanting to ask them about it.
           | "It's a tourist destination you have to buy tickets for" ->
           | Right, Tiananmen square has no stigma at all, but that is
           | different from the 1989 incident.
           | 
           | If you post about the 1989 incident on Weibo, it will
           | absolutely get removed and you _might_ get the local police
           | visiting you -- depending on how much time they have on their
           | hands and how incendiary your post was.
        
           | SoftTalker wrote:
           | > many people speak negatively of the CCP
           | 
           | Probably true. Right up to the point where they attract a
           | little too much attention, or annoy the wrong party official.
           | Then all that they said becomes evidence of their crimes.
        
       | mring33621 wrote:
       | ohhh nooo!
        
       | syntaxing wrote:
       | Since the supply chain is all from the same place, they can get
       | so creative and resourceful. You can get 48 and 96GB VRAM 3090 on
       | the grey market which is pretty awesome.
        
       | SilverElfin wrote:
       | I've seen comments saying that many foundational model providers
       | like DeepSeek haven't done a full pretraining in a long time.
       | Does that mean this use of chips is in reference to the past?
        
         | londons_explore wrote:
         | Whilst there aren't many papers on the matter, I would guess
         | that pretraining from scratch is a bit of a waste of money when
         | you could simply expand the depth/width of the 'old' model and
         | retrain only the 'new' bit.
        
         | KurSix wrote:
         | Even if they're not doing full-from-scratch training every
         | cycle, any serious model updates still soak up GPU hours
        
       | ajsnigrutin wrote:
       | Did china ban them too? I mean.. why should a chinese company
       | care about american regulation?
        
         | jjcc wrote:
         | Yes. China banned NVidia. Jensen Huang said NVidia is the first
         | one in the history banned by both sides. So Deepseek might find
         | a way to get around Chinese government ban if the claim is true
        
       | rvnx wrote:
       | Long term consequences: China outperforms Nvidia, by producing
       | cheaper, faster chips at a large scale, by getting inspired by
       | the IP but using their own production lines.
       | 
       | Through sanctions, the irony is that the west removed the
       | incentive for China to respect IP laws.
       | 
       | Well done.
       | 
       | If they can solve the lithography/ASML issue by getting access to
       | it, then they will be forced to win.
        
         | 1970-01-01 wrote:
         | I thought it was impossible for them to leapfrog without
         | actively occupying the TSMC fab as it takes years and years
         | just to dial-in the insane precision.
        
         | palmotea wrote:
         | > Long term consequences: China outperforms Nvidia, by
         | producing cheaper, faster chips at a large scale, by getting
         | inspired by the IP but using their own production lines.
         | 
         | Unlike your typical free market fanboy, the Chinese leadership
         | isn't stupid. They were always planning to do that, sanctions
         | or no.
         | 
         | Realistically, all sanctions can do is mess with their
         | timelines for some temporary strategic advantage, slowing some
         | things down and forcing reallocation of investment away from
         | other areas into the sanctioned areas.
         | 
         | The US refraining from sanctions is likely the stupid move,
         | because that lever of control will expire at some point. To not
         | use it is to squander it.
         | 
         | But if there's one thing the US government and its business
         | elite is good at, it's squandering things.
        
           | CamperBob2 wrote:
           | "Planning to do it" is one thing, but thanks to Trump's
           | erratic and corrupt trade policy, they now have a Manhattan
           | Project-level incentive to make it happen.
           | 
           | It's ridiculous to think they won't succeed, just by dint of
           | sheer numbers alone.
        
             | palmotea wrote:
             | > "Planning to do it" is one thing, but thanks to Trump's
             | erratic and corrupt trade policy, they now have a Manhattan
             | Project-level incentive to make it happen.
             | 
             | The plans weren't wishes, they were things they were
             | actively working on to make happen. The point is they
             | didn't need "Trump's erratic and corrupt trade policy" to
             | motivate it, _they were already motivated to do it anyway_.
             | 
             | The US's problem is that its actions are uncoordinated.
             | Sanctions and tariffs need to be coupled with massive
             | investments to build new capabilities, and the latter is
             | usually lacking. For instance, tariff revenue (and then
             | some) should be poured directly into subsidies for building
             | _new_ facilities that support critical industries (like
             | rare earths and electronics manufacturing). And things
             | would probably be counterintuitively more effective if
             | there was more tolerance of waste For instance, China 's
             | subsidized hundreds of solar panel manufacturers, none of
             | them make money and a lot have probably failed, but the
             | vicious domestic competition has helped them dominate that
             | technology globally. The US freaked out in a massive
             | scandal when one subsidized solar panel maker went out of
             | business.
        
               | CamperBob2 wrote:
               | _The plans weren 't wishes, they were things they were
               | actively working on to make happen. The point is they
               | didn't need "Trump's erratic and corrupt trade policy" to
               | motivate it, they were already motivated to do it
               | anyway._
               | 
               | Yes, they were "actively working on it"; no, they had
               | made little significant progress despite throwing tons of
               | money at the initiative.
               | 
               | There were lots of stories along the lines of
               | https://www.nytimes.com/2021/07/19/technology/china-
               | microchi... from the early 2020s, not so many lately.
               | Their internal posture will now be the same as Russia's
               | post-1945 push for the Bomb. Continued failure will
               | (possibly literally) place heads at stake.
               | 
               |  _The US 's problem is that its actions are
               | uncoordinated._
               | 
               | They are coordinated well enough, but with the goal of
               | magnifying Cheeto Benito's personal influence and
               | cultivating his in-group's fortunes.
        
               | palmotea wrote:
               | > Yes, they were "actively working on it"; no, they had
               | made little significant progress despite throwing tons of
               | money at the initiative.
               | 
               | That's how things sometimes go when you're building up a
               | capability. I'm sure they were going to work through the
               | setbacks, regardless.
               | 
               | >> The US's problem is that its actions are
               | uncoordinated.
               | 
               | > They are coordinated well enough, but with the goal of
               | magnifying Cheeto Benito's personal influence and
               | cultivating his in-group's fortunes.
               | 
               | No. That problem is bigger than the Trump
               | administrations, focusing on him is lazy.
        
               | CamperBob2 wrote:
               | _No. That problem is bigger than the Trump
               | administrations, focusing on him is lazy._
               | 
               | It's absurd to say that without elaborating on how anyone
               | else was "just as bad," which I expect will be a key part
               | of your next reply.
               | 
               | Trump is fucking _bad_ , and if you disagree after all
               | we've seen, you're either arguing in bad faith, or you're
               | not such a great person yourself. He is costing us every
               | jot and tittle of soft power we ever wielded as a nation.
               | 
               | Trump is the living embodiment of the old cliche about
               | how in the Chinese language, the words for "threat" and
               | "opportunity" are similar. His actions have comforted
               | Russia, alienated Europe, and galvanized China.
        
         | codedokode wrote:
         | I don't know much about GPUs, but is there really any value in
         | IP? I can learn to write HDL code all day long, but turning it
         | into real transistors is the hard part. Code is worth nothing
         | nowadays with AI.
        
           | PunchyHamster wrote:
           | not IP in particular but APIs. Putting your existing CUDA
           | codebase into new NVIDIA generation that might be noticeably
           | more expensive but is still faster/more energy-efficient than
           | competition.
           | 
           | Competition's software stack have to be good enough that it
           | is worth migrating over and I think till we get some kind of
           | cross vendor API for that it won't happen for a while
        
       | llm_nerd wrote:
       | There is a sudden groundswell of reports about China using nvidia
       | chips, always by unnamed sources, and I suspect if you could
       | trace it back you'll find nvidia pulling the levers.
       | 
       | nvidia is facing a lot of competitive threats and their moat is
       | being filled in. Google with their Ironwood TPU. Amazon with
       | Trainium3. Even Apple is adding tensor cores to their chips, and
       | if Apple went big scale it would be legitimate in the space as
       | well.
       | 
       | We know that China has a number of upstart TPU vendors, and
       | Huawei has built some "better than H200" solutions with a roadmap
       | to much higher heights.
       | 
       | So there is suddenly a bunch of secret-source reports that no,
       | China actually is totally reliant on nvidia. nvidia needs this to
       | be true, or at least people to believe it to be true.
       | 
       | I mean, after all the fanfare about the H200 being allowed to be
       | exported, nvidia shares...dropped. The market doesn't seem to be
       | buying the China reliance bluster.
        
       | FergusArgyll wrote:
       | I'm shocked, shocked!
        
       | protimewaster wrote:
       | Are these chips that are now banned but we're previously
       | available? If so, doesn't this basically mean nothing? They could
       | just be using chips that they bought when they were allowed to
       | buy them.
        
         | jldugger wrote:
         | Afaik, data center grade blackwell chips have never been legal
         | for export to china. I think this has more do to with NVIDIA
         | than DeepSeek. For a brief moment, people thought DeepSeek had
         | found some way to produce AI without sending boatloads of cash
         | to NVIDIA, causing a drop in share price.
         | 
         | Shortly thereafter people realized they were probably just
         | evading sanctions and ~stealing~ bootstrapping parameters from
         | other models to reach their stated training cost. This report
         | is just further reporting on that rumor.
        
       | adamsb6 wrote:
       | Well if unnamed sources are saying it you know it has to be true.
        
       | yamal4321 wrote:
       | "No shit Sherlock" moment
        
       | IncreasePosts wrote:
       | The ban is on Nvidia selling the chip to China. There is no ban
       | on China using the chips. So long as NVidia isn't knowingly
       | selling the chips to China this is a nothing burger.
        
       | Zigurd wrote:
       | The neo cloud providers, especially those outside the US, with
       | dubious financial backing, that are buying Nvidia chips as if
       | they were an appreciating asset, kind of like being a bitcoin
       | treasury, will be tempted to create some income in ways that
       | break sanctions.
        
       | lopatin wrote:
       | Oh no! Anyway ...
        
       | int32_64 wrote:
       | What's strange in this discussion of chips and export bans is
       | there's been zero discussion of cloud access, I guess networked
       | computers are difficult for America's gerontocrats to understand.
       | 
       | I've rented H100s no problem on American servers and there's no
       | KYC or anything, they let anybody do it.
        
         | mromanuk wrote:
         | Yes, it's easy, cheap and it works. Maybe they need a super big
         | volume and all the GPUs in the same space, to guarantee minimum
         | latency.
        
         | sneak wrote:
         | You can't really spend $500k on AWS without doing some form of
         | identity disclosure.
        
           | vidarh wrote:
           | A shell company complete with directors of your preferred
           | nationality is trivial to procure for relatively small
           | amounts of money.
        
           | int32_64 wrote:
           | That's fair, I'm also not accessing these resources from
           | Russia or North Korea so I imagine there's different
           | precautions for different countries.
        
         | dtech wrote:
         | I don't think DeepSeek could do that in the volume they need
        
           | hinkley wrote:
           | It's always the bandwidth. Noisy neighbors or part of the
           | Eight Fallacies and the cloud tries to pretend they don't
           | exist.
        
         | biophysboy wrote:
         | I mean, I thought the paranoia was about China making their own
         | models with their own chips. If they're renting USA models via
         | the cloud, that's "good".
        
         | xadhominemx wrote:
         | You should really seek to actually understand an issue before
         | you comment so arrogantly.
         | 
         | US authorities are ok with Chinese companies accessing GPUs in
         | overseas DCs because those DCs will still be subject any US
         | export controls. Right now, we don't really care if Chinese
         | companies are building tier-2 LLMs on US gear. If China invades
         | Taiwan or frontier models approach AGI, we will shut down those
         | Malaysian and Thai data centers overnight.
        
           | nish__ wrote:
           | Traditional social norms are reversed online because there is
           | no threat of immediate violence. Arrogance gets attention.
           | Politeness gets ignored. Don't be so harsh. It's just how
           | this generation communicates.
        
         | hinkley wrote:
         | If the CIA shows up, Amazon is 100% going to let them rootkit
         | those boxes. They might even have a way to do it without
         | rebooting your servers.
        
           | sofixa wrote:
           | To obtain what? Deepseek's newest open source model before
           | they release it?
        
             | hinkley wrote:
             | You think they're only going to eavesdrop?
             | 
             | You're mistaking them for the FBI. CIA has destabilized
             | entire countries.
        
       | Rover222 wrote:
       | Imagine being a blackmarket GPU smuggler. High danger and high
       | reward to get the most advanced AI silicon to a corporation
       | operating under a repressive regime.
       | 
       | Sounds straight out of sci-fi.
        
         | KurSix wrote:
         | The wild part is that it sounds sci-fi, but the reality is
         | probably way less glamorous
        
           | RobotToaster wrote:
           | I don't think a h100 in the prison pocket would be very
           | comfortable.
        
         | gosub100 wrote:
         | Illegal video gamers playing 3d shooters in virtual world using
         | contraband gpus
        
       | KurSix wrote:
       | Meanwhile, Nvidia is in the awkward position of being legally
       | required to deny everything but economically incentivized to sell
       | as much as Washington allows
        
       | kazinator wrote:
       | > _chips that are banned in the country_
       | 
       | > _The US bans the sale of these advanced semiconductors to
       | China_
       | 
       | Whoa there, Bloomberg; just because the USA bans the sale of
       | something _to_ your country doesn 't make it banned _in_ your
       | country.
        
         | Andoryuuta wrote:
         | I believe it is very much a two-way ban, depending on the
         | specific chips [0].
         | 
         | [0]: https://www.aljazeera.com/economy/2025/9/17/china-bans-
         | tech-...
        
           | pests wrote:
           | China banned companies from buying the made-for-China 6000D.
           | 
           | I'm sure they have knowledge of it being backdoored or
           | underpowered/buggy.
        
           | PunchyHamster wrote:
           | IIRC they ban companies that got funding from china's
           | government. i.e. they don't want their investment in AI to go
           | to NVIDIA but to local chipmakers
        
         | sofixa wrote:
         | > Whoa there, Bloomberg; just because the USA bans the sale of
         | something to your country doesn't make it banned in your
         | country.
         | 
         | Many Americans, including their government, seem to think that
         | US laws apply globally.
         | 
         | They have extradited Ukrainian men from Poland because that
         | Ukrainian was running a torrent website (illegal in the US, not
         | illegal in Ukraine nor Poland).
         | 
         | They tried getting an Australian extradited from Sweden and the
         | UK for supposedly hosting a website that contained information
         | the US government considered illegally obtained.
         | 
         | More egregiously, they have kidnapped tens to hundreds of
         | people from various countries, sometimes on reasons as flimsy
         | as watch model or name, to torture (sometimes to death),
         | because a lawyer working for the president decided that's
         | actually legal because they're _waves hands_ "enemy
         | combattants".
        
           | ebbi wrote:
           | The same government that runs Guantanamo prison, known for
           | it's illegal torture practices and imprisoning people with no
           | charges?
           | 
           | Can't be!
        
             | epolanski wrote:
             | Fun fact, when US prisoner of wars were water boarded by
             | the Japanese, these got death sentences.
             | 
             | When a US soldier was photographed in Vietnam waterboarding
             | a vietnamese PoW he got 22 years of prison.
             | 
             | Then came 2002 and rule of law stopped applying.
        
               | sofixa wrote:
               | > When a US soldier was photographed in Vietnam
               | waterboarding a vietnamese PoW he got 22 years of prison.
               | 
               | Really? Did he serve more than a month? Because if the
               | people who committed My Lai for off with slaps on the
               | wrist, I can't imagine something as trivial as
               | waterboarding would get any serious consequences.
        
               | epolanski wrote:
               | I am referring to this is the picture [1] which was
               | printed on the post in 1968.
               | 
               | I am not able to find more information about the court
               | martialed soldier, but the fact that he was sentenced to
               | 22 years of prison is a quote from a lecture of professor
               | Sarah Paine from the US Navy War Academy.
               | 
               | [1] https://en.wikipedia.org/wiki/File:Waterboarding_a_ca
               | ptured_...
        
       | DivingForGold wrote:
       | What do you want to bet ALL GPU's being manufactured by US
       | sources have NSA requirements that now have built into the chips
       | and firmware interesting "controls". They know what region of the
       | world the chip is in, they have features to "brick them" in case
       | of war, etc. Encrypted communication back to US servers required,
       | or if denied, then GPU will not function, etc.
        
         | cj wrote:
         | I'd be curious to hear how that could be achieved at a
         | technical level.
         | 
         | Presumably everything youre describing could be averted by
         | simply air gapping the hardware? Or tightly controlling how
         | data gets into and out of the system where the chips are used?
        
         | sneak wrote:
         | I'd bet good money. The chips have been decapped and roughly
         | analyzed, the only information going into or out of them is
         | from the host systems. Those are easy to convince they are
         | anywhere. Chips don't have wifi or gps or radios of any kind
         | inside of them, and what the nvidia drivers send and receive to
         | the world is easy to audit.
         | 
         | You give the tech too much credit.
        
       | dmboyd wrote:
       | This explains the 1000s of "no core no vram" listings for 5090s
       | If it were due to parts substitution for repairs, would have
       | expected they would be RMA'd rather than salvaged as they'd all
       | be within warranty.
        
       | Keyframe wrote:
       | Since they're going to get them anyways, maybe we should exchange
       | a few for a few pandas with the right to reproduce.
        
       | kingjimmy wrote:
       | :shocked pikachu face:
        
       | irthomasthomas wrote:
       | Related: Deepseek just leapfrogged the competition. Scores gold
       | in 2025's IMO, IOI, and ICPC world finals with an openweights
       | model.
        
       | bflesch wrote:
       | If the companies which are officially banned from owning these
       | products already own them, what does it say about recent
       | initiatives to unban Nvidia sales in China?
       | 
       | If demand of companies like deepseek has already been served,
       | will they buy significant volume of additional products from
       | nvidia once it is "legal" again?
       | 
       | It feels like the initiative of US politics to unblock nvidia
       | China sales might not be very fruitful.
        
       | natch wrote:
       | Anyone interested in the topic of whether the US can stay ahead
       | of China should ask AI to explain to them the Chinese concepts of
       | Kong Jiang Mei Guo Ren  and Mei Bao .
       | 
       | These concepts are the reason why during some periods flights to
       | the US have had an uncanny number of pregnant women and flights
       | back to China have had an uncanny number of newborn babies.
       | 
       | Now these babies are adults with US citizenship, with some who
       | returned to the US after primary school and became fully fluent
       | native English speakers, and some of whom may be thoroughly
       | culturally loyal to the Chinese communist party. And 100%
       | hireable by top US AI firms and working there as we speak.
       | 
       | It's staring everyone right in the face, but it's taboo to talk
       | about, because people conflate concerns about cultural loyalty
       | with racism.
       | 
       | I don't dislike these people. I welcome them. I also hope they
       | will learn the value of freedom and (representative) democracy.
       | btw Taiwan is a litmus test. (If you are one of the people I'm
       | speaking about, and you think it would be great if the CCP could
       | take over Taiwan, your values are not aligned with freedom and
       | democracy.)
       | 
       | The point is it's just silly to think we can stay ahead of China.
       | Some of their best researchers are embedded in some of our best
       | teams.
       | 
       | Keeping the technology from our best researchers is not going to
       | work imho. The only avenue I see is to try to culture hack the AI
       | efforts, and maybe most of the researchers, to be well aligned as
       | we go.
        
         | JSR_FDED wrote:
         | Cool plot for a novel, I'd read that!
        
         | rangestransform wrote:
         | It's really annoying to me that China is in this superposition
         | between a Han ethnostate and a self-proclaimed multicultural
         | multiethnic society, and it always happens to be the more
         | convenient one for any side to make their point
        
       | tehjoker wrote:
       | hope so! why should computing technology be restricted based on
       | country? this isn't a nuclear missile (and china already has
       | those, with a much saner strategic policy than us too (we have no
       | policy against preemptive strikes!))
        
         | platevoltage wrote:
         | I mean, it makes sense in the USA's head. They want to win the
         | AI race. What they are doing is making it so China has no
         | choice but to develop an alternative to Nvidia chips.
         | 
         | Eventually China will make their own shovels to dig up the
         | gold. I'm not sure what this would do to Nvidia, but I'm sure
         | we will find out.
        
           | tehjoker wrote:
           | The funny thing is we do not have the ability to do more than
           | slow them down briefly, so this will simply result in the
           | production of a totally parallel capability that can then be
           | sold to the rest of the world
        
       | gosub100 wrote:
       | We gotta protect Altmans and Jensen's moat. Can't have those Bad
       | Guys compete and drive down profits.
        
       | hinkley wrote:
       | Hmm. I've been out of the loop too long. When did China start
       | getting munitions laws thrown at it? When I cared to know, Boeing
       | could sell to everyone except NK, Syria, Iran, and two others I'm
       | now blanking on. It didn't matter we were using cryptography that
       | couldn't ship there because it was illegal for them to have our
       | hardware in the first place.
        
       | nostrademons wrote:
       | I thought this was common knowledge. DeepSeek's Wikipedia entry
       | says that they trained all their models on Nvidia chips procured
       | before the U.S. embargo to China on them. It wouldn't surprise me
       | if they continued acquiring them through, well, less than legal
       | means.
       | 
       | I also read somewhere (not Wikipedia) that they trained on
       | ChatGPT, Claude, and Gemini queries, basically feeding in the
       | output of competitor's LLMs as training data. Kinda surprised
       | they didn't run into model collapse problems, but they stole
       | their training data from other people who stole their training
       | data from data collections that arguably stole them from content
       | creators. It's bandits all the way down, so adding a little
       | smuggling to that doesn't surprise me.
        
         | echelon wrote:
         | > Kinda surprised they didn't run into model collapse problems,
         | 
         | This is just model distillation.
         | 
         | Anyone with the expertise to build a model from scratch (which
         | DeepSeek certainly can) can do this in a careful manner.
         | 
         | > but they stole their training data from other people who
         | stole their training data from data collections that arguably
         | stole them from content creators.
         | 
         | Bingo.
         | 
         | I have no problem with pirates pirating other pirates.
         | 
         | Screw OpenAI and Anthropic closed source models built from
         | public data. The law should be that weights trained from non-
         | owned sources should be public domain, or that any copyright
         | holder can sue them and demand model takedown.
         | 
         | Google and Meta are probably the only two AI companies that
         | have a right to license massive amounts of training data from
         | social media and user file uploads given that their ToSes grant
         | them these rights. But even Meta is pirating stuff.
         | 
         | Even if OpenAI and Anthropic continue pirating training data
         | and keeping the results closed, China's open source strategy
         | will win out in the end. It erodes the crust of value that is
         | carefully guarded by the American giants. Everyone else will be
         | integrating open models and hacking them apart, splicing them
         | in new ways.
        
           | rkagerer wrote:
           | _Google and Meta are probably the only two companies that
           | have a right to license their training data_
           | 
           | For the sake of someone unfamiliar... Why is that?
           | 
           | Did they pay teams of monkeys to generate their own, novel
           | training data? Or gain explicit, opt-in permission from users
           | who entrust them with their files/content?
        
             | echelon wrote:
             | > For the sake of someone unfamiliar... Why is that?
             | 
             | I edited my comment, but basically they both own massive
             | social media properties (YouTube, Instagram, Facebook) or
             | file upload sites (Google Drive, Google Photos, Gmail) and
             | their ToSes grant them these rights. You accept these terms
             | when you use their services.
             | 
             | That's not great, but we are getting free services. It's in
             | the terms.
             | 
             | It's a whole lot better than just scraping without
             | permission, compensation, acknowledgement, or even notice.
             | 
             | To be clear, I have no problem with these models being
             | built. But if they "steal" the data, the resultant model
             | shouldn't be owned by anyone. It should be public domain
             | and not allowed to be kept as a trade secret.
             | 
             | And it's funny that Anthropic is trying to depress our
             | wages by training on our code. Again - I'm fine with that -
             | I want to work faster, and I like these models and their
             | capabilities. But Anthropic shouldn't be able to own the
             | models they train off of us exclusively since they didn't
             | license or buy our data. They provided us with nothing at
             | all.
        
               | rkagerer wrote:
               | _You accept these terms when you use their services._
               | 
               | I certainly didn't*. I'd love to see litigation testing
               | just how solid those insidious opt-in-by-default schemes
               | are as a basis for "ownership".
               | 
               | If they had users _explicitly_ opt-in with a  "Yes, go
               | ahead and train on my stuff and by the way I assert that
               | I have all the rights to grant you the same", I'd have no
               | problem with that, and they'd have a much stronger claim.
               | 
               | (*Before others inevitably disagree: I do opt-out of this
               | stuff aggressively, and further send notice to companies
               | from time to time that I don't agree to certain
               | objectionable clauses of their ToS and they're welcome to
               | close my account).
        
               | ahtihn wrote:
               | > and further send notice to companies from time to time
               | that I don't agree to certain objectionable clauses of
               | their ToS and they're welcome to close my account
               | 
               | And then you stopped using their service right?
        
               | PunchyHamster wrote:
               | Facebook stole copyrighted material well above their own
               | and admitted to it. It's not just "we took our users
               | data", its "we literally downloaded torrent with 81
               | terabytes of books and used that for training".
               | 
               | Google most likely did something similar, just using
               | books they already had indexed in Google Books, and
               | probably by still seriously violating any reasonable
               | notion of copyright
        
             | ffsm8 wrote:
             | The explicit opt in is only necessary under gdpr, which is
             | a lot of data, but not a majority.
        
               | rkagerer wrote:
               | _only necessary under gdpr_
               | 
               | It's not that simple. The EU may be the only ones to have
               | codified that, but there's centuries of case law in other
               | jurisdictions dealing with ownership, that once the
               | matter hits litigation might turn out to say something
               | other than these tech companies would like.
        
             | noboostforyou wrote:
             | I'm pretty sure Meta stole a bunch of content for training
             | by torrenting it - https://www.pcgamer.com/gaming-
             | industry/court-documents-show...
        
         | lysace wrote:
         | Singapore is where it happens.
        
         | MangoToupe wrote:
         | > less than legal means.
         | 
         | This is an absurd concept when it comes to international trade.
         | Even intellectual property is mostly meaningless outside a
         | state. Of course people will evade sanctions; what is the us
         | going to do, invade singapore or malaysia?
        
           | tlb wrote:
           | Just because something is hard to enforce doesn't mean it's
           | absurd.
           | 
           | Embargoes aren't impossible to enforce against the foreign
           | importer. If a foreign entity is found to have placed orders
           | with false documents, they can be sanctioned, which can be
           | enforced against any of their international operations. It
           | makes it hard for them to do future business in global
           | markets. I would not recommend violating US sanctions no
           | matter where you are.
        
           | PunchyHamster wrote:
           | The companies it "stole" from broke the law in their own
           | country while acquiring the training data; frankly sanction
           | avoidance is lesser and arguably not even their (it's the
           | people in US that smuggle them, nothing breaking china law
           | afaik) crime
        
         | ComputerGuru wrote:
         | > I also read somewhere (not Wikipedia) that they trained on
         | ChatGPT, Claude, and Gemini queries, basically feeding in the
         | output of competitor's LLMs as training data
         | 
         | All the labs permitting synthetic data do that.
        
         | ComputerGuru wrote:
         | > It's bandits all the way down, so adding a little smuggling
         | to that doesn't surprise me.
         | 
         | Implying it's *morally* wrong for a Chinese company to bypass
         | US sanctions is hilarious. You really say that with a straight
         | face when even the president admits this is only protectionism?
        
           | echelon wrote:
           | It's the moral imperative of every country to optimize for
           | its citizens' economic prospects.
           | 
           | The CIA (and every other intelligence org.) is literally a
           | weapon designed to operate in the grey area to fit the
           | mandate of the policy makers and elected leadership. Many of
           | the things they do are questionable or worse. In the case of
           | the DoD, they do these things at the behest of democratically
           | elected leadership.
           | 
           | Of course US and China will operate in their own best
           | interests. Of course they will both play chess, both name
           | call, both sanction and impede. When it's not a hot war, it
           | is still a never-ending battle for each country's total
           | economic, soft, and hard power market share.
           | 
           | This is every country.
           | 
           | It's geopolitics.
        
             | yannyu wrote:
             | This is just "might makes right" but modern. I don't know
             | that this is the consistent, wide-held belief that you seem
             | to think it is. Plenty of people would rather our
             | governments not engage in clandestine disruption and
             | undermining of foreign governments.
             | 
             | Competition is inevitable, especially between geopolitical
             | rivals, but we don't have to engage in Minitrue-style "the
             | enemy has always been our enemy" rhetoric.
        
               | echelon wrote:
               | We live under economic conditions created by a government
               | that does intervene. And a greater world order
               | established by a hegemon that does intervene.
               | 
               | It would be interesting to see what life would be like
               | today had that not happened. It might be better, it might
               | be worse. Probably a little of both for different groups
               | of people.
               | 
               | As the world returns to multi-polarity, there are signs
               | of increases in violence.
               | 
               | The last time the world had multi-polarity, we had far
               | more wars. Including the worst wars the world has ever
               | seen.
        
               | yannyu wrote:
               | > The last time the world had multi-polarity, we had far
               | more wars. Including the worst wars the world has ever
               | seen.
               | 
               | Citations? Simply saying that World War 1 happened during
               | a time of multi-polarity is just begging the question.
               | Multi-polarity of varying degrees has always been the
               | case throughout human history, and often times single-
               | polarity is achieved only through extreme violence.
        
               | codyb wrote:
               | American Hegemony or Pax Americana (post WWII until
               | present) is the most peaceful period of human history,
               | despite the myriad atrocities which have occurred during
               | that period, from myriad different parties, including the
               | USA itself
               | 
               | A big reason for that, as far as I can tell, is that if
               | one side has the USA on its side, they're basically
               | unattackable for many places since the USA is so over
               | powered militarily and can project force anywhere
               | 
               | It stands to reason as the USA recedes from the world's
               | stage it will get more violent as more nations stand at
               | parity with their adversaries again. And we're certainly
               | seeing wars cropping up lately as the US continues to
               | undermine its traditional allies, bully adversaries,
               | declare trade wars, and withdraw from agreements.
        
               | realusername wrote:
               | This is not news, I had "the multi polar world" in
               | history class in high school in the early 2000s, it's
               | just that the US suddenly realized it and has been blind
               | to the change for a while.
        
               | satvikpendem wrote:
               | Do you think countries behave differently than what the
               | parent has said? This has been going on forever, since
               | the first clan of humans fought another, any reasoning
               | other than "might makes right" is a post-hoc
               | rationalization not based in history.
        
             | hearsathought wrote:
             | > It's the moral imperative of every country to optimize
             | for its citizens' economic prospects.
             | 
             | "Moral imperative"? No country was ever created out of a
             | moral imperative. None. Also, no country was ever created
             | to optimize for its citizens' economic prospects. Every
             | country was created by the elites for the benefits of the
             | elites.
        
               | echelon wrote:
               | > We hold these truths to be self-evident, that all men
               | are created equal, that they are endowed by their Creator
               | with certain unalienable Rights, that among these are
               | Life, Liberty and the pursuit of Happiness.--That to
               | secure these rights, Governments are instituted among
               | Men, deriving their just powers from the consent of the
               | governed, --That whenever any Form of Government becomes
               | destructive of these ends, it is the Right of the People
               | to alter or to abolish it, and to institute new
               | Government, laying its foundation on such principles and
               | organizing its powers in such form, as to them shall seem
               | most likely to effect their Safety and Happiness.
               | 
               | The _intent_ is there.
               | 
               | It's an incredibly complex distributed system with
               | millions of actors and interactions, entrenched powers,
               | regulatory capture, Citizens United, etc. It has to be
               | defended and garbage collected.
        
               | hearsathought wrote:
               | > The intent is there.
               | 
               | The declaration of independence was written by one of the
               | wealthiest slave owners in the country. "Moral
               | imperative" was certainly not behind the american
               | revolution. The economic interests of the elites were.
               | There are no saints in politics. Just interests - mostly
               | of the elites.
        
               | godsinhisheaven wrote:
               | This is an extremely reductive take. Thomas Jefferson was
               | a hero and a scholar! Think about the times he lived in,
               | everyone lived under some sort of aristocratic monarchy,
               | that was the norm. Certainly there were some economic
               | interests at play in tge Revolution, but is it
               | economically smart to declare independence from the most
               | powerful empire of the day? Indeed, many of the "elites"
               | at the time sided with the British! There had to be
               | something more than just "class interests" at play to
               | convince these wealthy elites to renounce their fealty to
               | their government, giving up all legal claims to their
               | property and indeed their very lives, should the
               | revolutionaries have lost.
        
               | coliveira wrote:
               | You mean, the fiction is there. They did use a lot of
               | nice words, but the reality is a bunch of slave owners
               | creating a society controlled by oligarchs.
        
             | drysine wrote:
             | >It's the moral imperative of every country to optimize for
             | its citizens' economic prospects.
             | 
             | Moral???
        
               | coliveira wrote:
               | Correct, this is double-speak at its maximum.
        
             | coliveira wrote:
             | The US wants to have its cake and eat it too. It will pose
             | around as a democratic and peaceful force, and use these
             | illegal and shady tactics whenever they seem fit. And if
             | you say this, their enablers in the traditional media will
             | label you a conspiracy theorist.
        
             | pyuser583 wrote:
             | > The CIA (and every other intelligence org.) is literally
             | a weapon designed to operate in the grey area to fit the
             | mandate of the policy makers and elected leadership
             | 
             | There is some truth, but this is how you get a crappy-ass
             | intelligence agency.
             | 
             | Good intelligence agencies are focused on gathering
             | intelligence, not performing random tasks that benefit from
             | secrecy.
        
           | voidnap wrote:
           | Yes. The bans are export controls. They are not banned in
           | china. They are just banned from export in the US. Using them
           | in china is legal in china.
        
             | ignoramous wrote:
             | > _Yes. The bans are export controls._
             | 
             | These export controls increasingly look like "tax".
             | The White House said the US government would take a 25
             | percent cut of the chip's sales, similar to a deal with AMD
             | and Nvidia earlier this year that allowed them to sell
             | lower-powered AI chips to China while paying the US
             | government 15 percent of the proceeds.
             | 
             | > _Using them in China is legal in China._
             | 
             | Technically, yes. The CCP, though, wants to incentivize
             | Chinese firms to use domestically-manufactured chips.
             | 
             | https://www.silicon.co.uk/e-innovation/artificial-
             | intelligen... / https://archive.vn/B2pah
        
               | htek wrote:
               | That's Corporatism. It's from the fascist playbook where
               | the state takes partial or complete ownership of private
               | companies. Where does that money go, to some slush fund
               | for the president? The reason for the export controls is
               | to keep our potential adversaries from being on the
               | bleeding edge of frontier AI. It goes against the US's
               | interests to give China a leg up with advanced chips.
               | It's almost laughable, of course, as the Nvidia chips are
               | already manufactured in a country that China claims as
               | their own. If they ever pressed the issue, we could find
               | ourselves without the most advanced chips.
        
               | parodysbird wrote:
               | This is not at all what is meant by fascist corporatism,
               | nor corporatism more generally. Corporatism is more about
               | collective bargaining by professional trades, and is
               | _not_ the sense of corporation as used for private
               | companies.
        
               | actionfromafar wrote:
               | This recent White House is another animal. It's just
               | bribes all the way down.
        
           | Dylan16807 wrote:
           | Smuggling or buying from a smuggler is on the "banditry" side
           | whether you think it's moral or not.
        
             | tmnvix wrote:
             | Hypothetical: I buy a product imported legally from the US
             | and later sell it on the local used market to a Chinese
             | tourist who takes it back to China with them. Where is the
             | crime, smuggling, or 'banditry' here? US law is just that -
             | _US_ law.
        
         | KumaBear wrote:
         | Lets take the weapons embargos placed on Israel by our allies.
         | In the NDAA must pass bill we set funds aside to procure those
         | weapons and sell them to Israel. We don't really care about
         | these things we have selective enforcement.
        
         | htrp wrote:
         | Everyone trains on queries from other models, it's called
         | distillation
        
           | LogicFailsMe wrote:
           | Well, given AI content cannot be copyrighted, haters can hate
           | hate hate hate hate...
        
             | halJordan wrote:
             | That's a little disingenuous. If i buy a printer and use
             | the ink in the cartridge to reverse engineer a beautiful
             | red, have i stolen something from the printer manufacturer?
             | Especially if they lose business because they no longer
             | have what distinguished them?
             | 
             | Clean room design is not new (or illegal), but it's always
             | been a form of stealing
        
         | epolanski wrote:
         | Lol @ quoting 3 companies that broke any possible copyright law
         | as victims.
        
         | coliveira wrote:
         | They don't need to break any laws for this. Where do you think
         | are the customers for data centers in the Middle East? Chinese
         | companies do everything legally, paying for access to data
         | centers that got the chips directly from the US.
        
       | backtoyoujim wrote:
       | The main reason "Nvidia chips control" doesn't work is because
       | laws will not prevent criminals from obtaining Nvidia chips nor
       | breaking laws.
        
         | hinkley wrote:
         | Young travelers have always found ways to subsidize their trips
         | by selling some of their personal possessions while there. I
         | heard Levi's were so popular during the Cold War that customs
         | started counting your clothes going in and out of Russia, which
         | still wouldn't stop someone swapping a worn out pair for new
         | ones.
         | 
         | And American cigarettes were popular in Canada in the 90's and
         | 00's. IIRC the Turkish tobacco blended in was banned by the
         | Canadian state dept so theirs were garbage. Meanwhile Americans
         | were flying into Canada in order to fly to Cuba.
        
       | JSR_FDED wrote:
       | Oh no, this will lead to better models for less money!
        
       | almosthere wrote:
       | Nvidia sells to Bob       Bob sells to China       Bob is a
       | citizen of O
       | 
       | O = location where no laws broken
        
         | higginsniggins wrote:
         | Bob is a citizen of X, the site formerly known as twitter where
         | their are no laws
        
       | jmyeet wrote:
       | This is the least surprising thing ever and was highly suspected
       | when DeepSeek released their original model.
       | 
       | We've also seen this with sanctions on Russia but they still
       | somehow bought a bunch of TI chips for missiles [1].
       | 
       | As many here know, the US restricts the export of certain
       | technology to China because reasons. This includes lithography
       | machines from ASML, a Dutch company, who have a monopoly on the
       | latest EUV processes. It's geopolitically interesting that the
       | big buyer of ASML products are TSMC in TAiwan as well as Samsung
       | in South Korea (and possibly Japan?).
       | 
       | I expect this will become a national security issue for China and
       | long-term you will see China try and replicate the best
       | lithographic processes and chips such that the gap will greatly
       | narrow. This will take years and involves a lot of depenedent
       | industries but of anyone China has shown the willingness, ability
       | and resolve to pursue decades-long infrastructure and national
       | security projects.
       | 
       | In the meantime, bans on GPU exports to China will continue to be
       | circumvented (eg [2]) and honestly there's no real reason for
       | those export restrictions anyway.
       | 
       | [1]: https://archive.is/S2uD4
       | 
       | [2]: https://www.reuters.com/world/china/us-justice-department-
       | ac...
        
       | byyoung3 wrote:
       | Send to Singapore then to China, it's a prett simple loophole.
        
       | platevoltage wrote:
       | Fine. Good. Unless you want the Chinese to be even more motivated
       | to develop an alternative to Nvidia chips.
        
       | nextworddev wrote:
       | I mean of course that's the case
        
       | reeeli wrote:
       | kawaii nonsense, please do some journalism and dig into some
       | relevant stuff, Mr. Dump and Mrs. Pump
        
       | Havoc wrote:
       | The gamernexus point about "open one eye, close one eye" was on
       | point here.
       | 
       | China instructed companies to stop using nvidia chips
       | too...knowing fully well it'll not stop. It achieves their aim
       | though - a strong nudge in the direction of independence.
       | 
       | Much of Chinese top level direction seems to be that way -
       | indicating direction of travel and implied future threats for
       | companies not rowing in said direction
       | 
       | As for the US side of the ban - that's about as sound as the war
       | on drugs. Anyone with two brain cells to rub together knows
       | that's futile
        
         | embedding-shape wrote:
         | As someone who doesn't want to live in a country run by
         | corporations, that first part of indication the direction of
         | travel sounds like a good idea. Obviously, the companies should
         | follow the direction set out by the nation willingly and not
         | because of threats, but otherwise it doesn't sound like a dumb
         | idea to try to unify people toward some goal rather than the
         | goal being "individuals can get very, very rich and wealthy".
        
       | epolanski wrote:
       | These bans are hard to enforce.
       | 
       | You just need any company outside china that isn't under sanction
       | to buy them and then sell them.
       | 
       | Even further, you can skip the hardware buying entirely and set
       | some shell company to buy compute from the dozens of vendors.
        
       | thiago_fm wrote:
       | This is so obvious, have you seen how many GPUs does Singapore
       | and the countries nearby are buying?
       | 
       | They are still training with less than 1/10 of what the US
       | companies do own, and yet having similar results.
       | 
       | China is killing it.
        
       | spjt wrote:
       | No shit. My question is the real question, how can I make money
       | straw-buying GPU's and smuggling them to China?
        
       | nowittyusername wrote:
       | let me just dig out a surprise Pikachu face from my pocket
       | somewhere here ....
        
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