Northwestern Polytechnical University, a prominent Chinese institution specializing in defense research, purchased two advanced Nvidia H200 AI chips in October, according to official procurement records. The university, located in Xi’an, is on the US trade blacklist and is recognized for its significant involvement in military technology, including research on aircraft, missiles, and satellites.
Procurement of Nvidia H200 chips
Purchase records indicate the university paid 874,700 yuan, equivalent to around $123,000, for the two H200 chips. The transaction was facilitated not directly with Nvidia but through a local firm, Shaanxi Bosuan Network Technology, for use in the university’s management department.
Since 2001, the US Commerce Department has restricted Northwestern Polytechnical University’s access to American technology, citing concerns over missile technology proliferation. These restrictions became even more stringent in 2019, with the majority of US export requests to the university subsequently denied.
The institution is also identified as one of China’s “Seven Sons of National Defense,” a group of universities serving as key partners for the country’s military-industrial complex by conducting specialized research.
Mini dictionary: Seven Sons of National Defense: A collective term for seven leading Chinese universities closely aligned with the nation’s defense sector and responsible for significant military research and innovation.
Wider pattern of chip acquisition and rental
Beyond purchasing hardware, Northwestern Polytechnical University also rented access to powerful Nvidia chips. In January, the university’s cybersecurity department signed two seven-month agreements, each granting access to a server equipped with eight Nvidia H200 chips at costs of 441,700 and 441,000 yuan, respectively. Researchers intended to use these chips for AI model development and reinforcement learning training.
The same department acquired rental access to servers hosting eight Nvidia A100 chips and eight A800 chips, both of which the US government officially prohibits for export to China.
In April, another research institute at the university paid 375,000 yuan to use at least 24 A100 chips for advanced research on structural and fluid dynamics.
| Chip Model | Type of Acquisition | Purpose | Cost (Yuan) | Quantity |
|---|---|---|---|---|
| H200 | Purchase | Management dept. R&D | 874,700 | 2 |
| H200 | Rental | Cybersecurity AI training | 441,700 / 441,000 | 8 per server (2 servers) |
| A100 | Rental | Cybersecurity & structural research | 375,000 | 24 |
| A800 | Rental | Cybersecurity | Not specified | 8 |
Other universities sourced banned chips
Reuters examined 26 purchase and registration records from 2026 showing that multiple Chinese universities acquired restricted Nvidia chips via local vendors. Shenzhen University obtained three H100 chips for 769,800 yuan in September. In June, Wuhan University of Technology paid 355,000 yuan for a server equipped with an H100 chip, in addition to procuring four A100 chips for 344,000 yuan.
Beihang University, another of the Seven Sons, purchased four A800 chips in April for 489,000 yuan for its ongoing aerospace and military projects.
Nvidia, Northwestern Polytechnical University, and the Bureau of Industry and Security—an office within the US Commerce Department overseeing export controls—did not issue responses to inquiries. Reuters also reported being unable to contact Shaanxi Bosuan Network Technology.
Political scrutiny and leadership controversy
The disclosure of these transactions comes as Nvidia CEO Jensen Huang faces heightened scrutiny from US lawmakers regarding his advocacy for easing export restrictions on US chip sales to China. Huang has expressed the view that permitting American companies to serve Chinese customers will support US leadership in AI technology and maintain American influence over the Chinese market.
Huang maintains that continued sales of advanced chips to China benefit US competitiveness and help prevent China’s increased reliance on domestic suppliers.
Despite Huang’s position, several lawmakers from both parties have continued to voice concerns that such technology transfers could empower China’s armed forces or boost intelligence capabilities, leading to calls for even tighter export policies and closer end-use monitoring.
In January, the Trump administration introduced a policy to allow selected H200 chip sales to China with each deal requiring individual approval; these exemptions, however, do not extend to entities on the US trade blacklist, including Northwestern Polytechnical University.
Jensen Huang recently attracted further attention following media reports linking him to Alice Huang, a former Singaporean data center executive accused of espionage for Beijing. On November 8, Huang acknowledged a personal relationship with Alice Huang, prompting Nvidia’s board to open an independent inquiry into possible foreign intelligence targeting. Huang is 63 years old and holds both Taiwanese and US citizenship.
US Senator Kevin Cramer, a Republican, commented that the situation with Huang presents a “potential for extortion” and suggested Huang should step down amid these concerns. Three Republican committee chairmen have requested Huang appear at a congressional briefing scheduled for November 18.
