Solid Petabyte data transfers replacing Black Market -Chips while China AI trains outside its borders
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- Flying Petabytes from AI data is the latest China solution for strict American chip checks
- Physical smuggling of hard drives Now bypassing surveillance and digital firewalls in several areas of law
- GPU-Rich Malaysian data centers become Nul for Offshore Chinese AI Training
While the United States continues to tighten the export restrictions on advanced AI chips, as produced by NvidiaChinese AI companies turn to a solution that almost feels analogue in today’s digital world.
Instead of trusting online transfers or sanctioned hardware, some companies physically transport huge data sets on hard drives across borders.
A report from the Wall Street Journal Claims Four Chinese technical employees recently flew to Malaysia, each with 15 hard drives with high capacity, in total an amazing 4.8 petabytes of data intended for training large language models.
Big Data continues to enter China despite limitations
American limitations have made it increasingly difficult to acquire high-end AI GPUs through legal channels.
Although NVIDIA claims: “There is no proof of chip-derived,” reports on the ground otherwise, with a Black market for smuggled Nvidia GPUs bloom in China.
Some of them Chips are reportedly entered the country Via subsidiaries and partners in neighboring countries.
However, that route becomes more expensive and riskier due to increased control and diplomatic pressure from Washington in these intervening countries.
As a result, companies change tactics: instead of importing limited chips, they export huge amounts of training data.
This is a complex and resource-intensive process. Companies carefully plan the physical transport of data, the distribution of disks to prevent customs detection.
They also rent GPU-rich servers in third-party countries such as Malaysia to process the data.
An example is a Chinese company that used his subsidiary registered by Singapore to sign a data center contract. However, the Malaysian partner later urged local registration to prevent the pressure of the regulations, because Singapore began to sharpen his own checks.
Despite increasing efforts of American agencies, enforcement gaps and logistics meshes are still being used. Although sending petabytes to data on hard drives may seem outdated, it bypasses bandwidth restrictions and digital surveillance.
The use of hard drives ranging from Large SSDs Arrays to high capacity External HDDsis central to these secret transfers.
Yet it raises a question: why not use magnetic tape, especially given that modern LTO-10 formats up to 30 TB uncompressed and 75 TB compressed?
The answer is probably usability. Tape solutions require specialized reading/writing hardware and miss the plug-and-play convenience of High -quality HDDs Often used today.
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