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Technology
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Jun 15, 2025
Chinese AI firms exploit loophole to bypass US chip restrictions
Chinese AI companies are circumventing US chip restrictions by sending engineers—and loads of data—abroad instead of importing high-tech chips. The trick? They fly out to places like Malaysia, rent servers with American-made chips, and train their AI models there using hard drives packed with data. This hands-on method is known as "sneakernet."
TL;DR
It's a creative (and pretty old-school) way to dodge US export bans meant to slow down China's tech progress. Even though it takes a lot of effort—physically moving hard drives and people—it shows just how determined these companies are. And it's working: China is closing the gap with the US in AI, which has some policymakers worried about losing their tech edge.