The U.S. thought it could choke off China’s AI ambitions by banning Nvidia’s most advanced chips.Continue reading on Coinmonks »The U.S. thought it could choke off China’s AI ambitions by banning Nvidia’s most advanced chips.Continue reading on Coinmonks »

How the world really works.

2025/10/06 12:33
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The U.S. thought it could choke off China’s AI ambitions by banning Nvidia’s most advanced chips.

Instead, it created the most lucrative black-market repair shop network in recent memory.

It’s almost comical.

The H100 and A100 GPUs, already smuggled into China by the billions of dollars, are now breaking down after years of running at full throttle.

Enterprising firms in Shenzhen have stepped in, charging up to $2,800 a pop to “fix” contraband silicon.

One shop repairs up to 500 chips a month, testing them in a facility that looks more like a small data center than a repair booth.

This isn’t dusty backroom workshops.

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We’re talking industrial-scale refurbishing, with full server racks simulating customer environments.

When the U.S. Congress talks about “location verification” bills to track chips after they’re sold, you almost want to laugh.

Good luck tracing a GPU that’s already been stripped, re-soldered, and shoved back into a rack in Shanghai.

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