BEIJING, China – Leading Chinese technology firms are increasingly training their artificial intelligence (AI) models abroad to gain access to Nvidia chips, circumventing U.S. restrictions aimed at limiting China’s advancement in advanced technology, according to a report by the Financial Times.

Companies such as Alibaba (9988.HK) and ByteDance are reportedly leveraging data centers in Southeast Asia to develop their newest large language models (LLMs). The move comes amid U.S. efforts to restrict the export of high-performance computing chips, particularly Nvidia’s H100 series, which are critical for AI training.

Offshore AI Model Training

According to sources cited by the Financial Times, Chinese firms are increasingly turning to leased overseas data centers owned and operated by non-Chinese entities to continue training AI models. This approach allows companies to bypass domestic constraints while still accessing the high-performance GPUs necessary for large-scale AI computations.

DeepSeek, an exception among Chinese tech firms, reportedly stockpiled Nvidia chips prior to the U.S. export bans, enabling the company to train its models domestically. DeepSeek is also collaborating with Chinese chip manufacturers, led by Huawei, to develop the next generation of homegrown AI processors, positioning itself as a key player in China’s AI ecosystem.

Impact of U.S. Export Restrictions

The U.S. moved to restrict the sale of Nvidia’s advanced H100 chips to Chinese companies in April 2025, part of broader measures aimed at limiting access to cutting-edge AI technology. These restrictions have forced Chinese firms to seek alternative avenues for AI model training, including international partnerships and data center leases abroad.

Industry experts suggest that these strategies reflect China’s growing commitment to AI self-reliance, while also highlighting the challenges posed by global technology supply chains and geopolitical tensions.

Companies Involved

Besides Alibaba and ByteDance, Chinese AI startups and tech giants including Huawei and DeepSeek are actively exploring solutions to circumvent chip restrictions. However, none of these companies responded to Reuters’ requests for comment. Nvidia also declined to comment on the report.

The trend underscores a larger pattern of offshore AI innovation, where countries and companies are seeking ways to maintain competitiveness amid increasing geopolitical restrictions on technology exports.

Conclusion

China’s strategy of training AI models overseas highlights both the nation’s ambitions in artificial intelligence and the growing influence of global chip supply dynamics. While U.S. export restrictions have slowed domestic access to advanced GPUs, Chinese tech firms are finding alternative solutions to sustain AI research and maintain momentum in the competitive global AI landscape.