The strict export restrictions imposed by the US government on Chinese technology companies have been circumvented in a new way that pushes the boundaries of commercial acumen. While the sale of the latest generation of Nvidia Blackwell processors to the Chinese market is prohibited, tech giant Tencent has found a way around this obstacle. The company has bypassed the purchase ban through leasing, ensuring it doesn’t fall behind in the AI race.
A massive $1.2 billion leasing deal
According to reports, Tencent has entered into a huge collaboration with Japan-based cloud service provider Datasection. Taking advantage of the fact that there is no strict ban on leasing computing power via the cloud in US export controls, the company gained access to Blackwell B200 models, the most powerful AI chips produced by Nvidia. This move allowed access to cutting-edge technology without a physical product transfer.
According to information shared by the Financial Times, the value of this leasing agreement exceeds $1.2 billion. Datasection has made a significant portion of its 15,000-unit Blackwell processor pool available to Tencent. Because these processors don’t physically enter China’s borders and only utilize processing power remotely, legal boundaries are not violated. This allows Tencent to train its most powerful models without being constrained by hardware restrictions in its own country.
Industry analysts say this method has become not just a necessity but also a strategic choice for Chinese companies. According to Bernstein Research analysts, leasing full-performance B200 and B300 chips running on servers abroad is far more sensible than buying trimmed-down H20 chips allowed for sale in the Chinese market. Nvidia’s latest Blackwell architecture offers significantly superior performance compared to models specifically manufactured for the Chinese market.
Do you think the US government will introduce new legislation to close this leasing loophole? Or is this an inevitable consequence of the nature of cloud technology? Share your thoughts in the comments!
