Chinese AI startup Moonshot AI has reportedly trained its massive 2.8 trillion parameter Kimi K3 model using Nvidia’s most advanced chips, including versions like the Blackwell or GB300. This development raises fresh doubts about Washington’s attempts to restrict cutting-edge AI hardware from reaching China.
According to White House OSTP Director Michael Kratsios, Moonshot bypassed US export controls by acquiring servers fitted with GB300 chips in Thailand. These controls were tightened between 2022 and 2023 to prevent China’s access to high-performance AI processors. Yet, despite these measures, Moonshot and other firms like DeepSeek have found ways to obtain Nvidia’s top-tier hardware. DeepSeek was previously reported to have trained its latest AI model using Nvidia’s Blackwell chip in Inner Mongolia, defying the bans.
Loopholes in export restrictions and their impact
Moonshot AI is not just stopping at Kimi K3. The company is actively seeking additional Nvidia Blackwell chips to power its upcoming Kimi K4 system. This suggests that intermediaries enabling access to these chips remain operational despite concerted US efforts to close the gaps, including a fresh crackdown announced in May 2026.
With a recent $3.5 billion funding round that values Moonshot at $35 billion, the startup clearly has the financial muscle to secure premium hardware regardless of sanctions. This ongoing supply undermines the effectiveness of export controls and signals a growing challenge for US policymakers trying to contain China’s AI ambitions.
Should the White House impose stricter penalties on countries or data centers acting as transit points, it could disrupt global AI hardware distribution. If not, markets will likely adjust to a reality where advanced AI compute resources continue flowing into China, despite official restrictions.
This material is for informational purposes only and does not constitute financial advice.
