This is how China’s AI giants outmaneuver U.S. chip ban

Despite tightening U.S. export controls, Chinese AI leaders are aggressively circumventing restrictions on Nvidia’s cutting-edge chips. DeepSeek, the Hangzhou-based startup celebrated for training top-tier models on shoestring budgets, strategically stockpiled thousands of high-end Nvidia GPUs before the latest bans took effect, enabling uninterrupted full-scale training inside China. The company has further fortified its position by embedding Huawei Ascend engineers in its offices to optimize next-generation runs on Chinese-made chips.

AI giants

Meanwhile, ByteDance emerged as the largest Chinese buyer of Nvidia hardware in 2025, amassing a massive war-chest of processors to power its global apps ahead of anticipated supply cuts. Following Beijing’s August directive to freeze new Nvidia orders, regulators are now pressing firms to pivot entirely to domestic alternatives. With even Nvidia’s China-compliant H20 chip seeing lukewarm demand, the message is clear: China’s AI industry is racing toward self-reliance while still squeezing every last restricted Nvidia chip it legally secured.

Business News