2025 PLA Procurement Leak: China Sought Banned Nvidia Chips for Military AI and Robot Dogs

• What Did the PLA Actually Try to Buy?
• Why Is Nvidia Still China's Go-To Choice?
• The Shell Game: How Restricted Tech Gets Through
• US Policy Whiplash on Chip Exports
• The Bigger Picture: AI Arms Race Goes Semiconductor
• FAQs

Recently uncovered procurement documents from China's People's Liberation Army (PLA) reveal a systematic effort to acquire restricted Nvidia GPUs for military AI applications, including advanced servers and robotic combat systems. The bids targeted both banned and permitted chips, highlighting China's ongoing struggle to develop domestic alternatives to US semiconductor technology. While some contracts appear to have been fulfilled through indirect channels, US policymakers are now pushing to reinstate export bans on key chips like the H20, fearing military applications.

What Did the PLA Actually Try to Buy?

The procurement records tell a fascinating story - between April and July 2024, the PLA placed multiple bids for Nvidia's most powerful chips. They wanted the H100 (banned since 2022), RTX 6000 workstation GPUs, and the newly permitted H20 cards. One particularly eyebrow-raising request? A 33-pound robotic dog that needed Nvidia's Jetson computing module - though this project was later canceled. What's interesting is how specific some requests were. One bid demanded original packaging and on-site installation for H100 GPUs, suggesting they wanted the real deal, not knockoffs. By June, the PLA had even selected a provisional supplier for RTX 6000 chips, though contract details remained pending.

Why Is Nvidia Still China's Go-To Choice?

Here's the kicker - despite US export controls and China's massive investment in domestic chips, PLA documents show they still prefer Nvidia hardware. Ryan Fedasiuk, a former State Department advisor who reviewed the documents, put it bluntly: "Nobody can beat Nvidia, and Huawei is not close." The performance gap is real. Chinese AI firms and military researchers apparently need Nvidia's superior processing power to run massive models like DeepSeek-R1 671B. Nvidia's spokesperson countered that China has sufficient domestic chips for military use, and that buying older chips just helps them "test US competition." But let's be real - when you're bidding for banned H100s, it's not just about benchmarking.

The Shell Game: How Restricted Tech Gets Through

Here's where it gets shady. Fedasiuk revealed the PLA has multiple ways to circumvent restrictions: "There are ample shortcuts, subsidiaries, and shell companies that the PLA can and does use to source those chips." While he didn't specify current cases, history shows how this works - companies in third countries buy the chips legally, then "resell" them to Chinese entities. Nvidia insists restricted products WOULD lack support and software, but for military R&D? They'll reverse-engineer what they need. The bigger question is why China keeps leaving paper trails in official procurement portals. Either it's bureaucratic carelessness, or they want the US to know they're finding ways around the bans.

US Policy Whiplash on Chip Exports

The Biden administration's recent decision to allow H20 chip sales to China has security hawks furious. Twenty policymakers just drafted a letter urging the Commerce Department to reinstate the ban, arguing these chips could boost China's military AI. Craig Singleton from the Foundation for Defense of Democracies warns the policy reversal could "create floodgates." Meanwhile, Nvidia finds itself squeezed from both sides - summoned by Chinese regulators over alleged H20 "backdoor security risks" while facing US pressure to limit exports. CEO Jensen Huang recently suggested the Chinese military would avoid US tech due to "unpredictability." Given these procurement documents, that prediction seems... optimistic.

The Bigger Picture: AI Arms Race Goes Semiconductor

This isn't just about a few GPUs. It's about who controls the building blocks of artificial intelligence. While China pours billions into domestic chip efforts like Huawei's Ascend series, these documents prove they still depend on American technology for cutting-edge applications. The Commerce Department claims it's tightened controls, but as long as performance gaps exist and loopholes remain, this cat-and-mouse game will continue. One thing's certain - the next generation of military AI might just depend on who can get their hands on the best graphics cards.

FAQs

What Nvidia chips did China's military try to acquire?

According to PLA procurement documents, bids were placed for Nvidia's H100, RTX 6000, and H20 chips between April-July 2024, including some models banned for export to China.

How is China acquiring restricted Nvidia technology?

Experts suggest indirect channels including subsidiaries, shell companies, and third-country intermediaries help circumvent export controls, though specific current cases remain unclear.

Why does the PLA prefer Nvidia over domestic alternatives?

Industry analysts note Nvidia's significant performance advantages in AI processing power, with even China's best domestic options like Huawei chips reportedly lagging behind.

What is the US government doing about these exports?

Twenty US policymakers recently urged reinstating bans on H20 chip sales to China, while the Commerce Department maintains it carefully reviews all license applications.