China's AI chip market thrives despite challenges.

Despite US sanctions, Chinese vendors are able to procure small numbers of high-end Nvidia AI chips, particularly the A100, through an underground market. The chips are in high demand due to the booming AI industry, but vendors are keen to avoid scrutiny from both US and Chinese authorities. While buying or selling high-end US chips is not illegal in China, US export restrictions have created a de facto underground market. Nvidia said it did not allow exports of the A100 or H100 to China, instead providing reduced-capability substitutes that comply with US law.