China's military tried to buy Nvidia chips for AI servers and a robot dog, documents show
BI reviewed records on the Chinese People's Liberation Army (PLA)'s official procurement portal, where military units post thousands of requests for equipment that local contractors can bid on.
Multiple requests over the past year reference both banned and permitted Nvidia hardware, including the H20 chip, on which the US is set to loosen export controls—a move that has sent Nvidia's stock soaring.
An Nvidia spokesperson told BI that China has "more than enough" domestic chips for all its military applications.
"Buying a handful of older products to test the US competition is not a national security concern," the spokesperson said. "Using restricted products for military applications would be a nonstarter, without support, software, or maintenance."
While the Chinese military tries to buy Nvidia's hardware, the chipmaker faces pressure from other parts of the Chinese government, which has long supported efforts to build a domestic alternative.
On Thursday, China's internet regulator said it had summoned the company to explain alleged backdoor security risks in its H20 chips, claims that Nvidia has denied, Reuters reported.
How the Chinese army wants to use Nvidia chips
The military projects reviewed by BI are typically for servers to run AI models, like those built by DeepSeek, for unspecified purposes.
Three requests published this April call for banned Nvidia chips to power such servers. One requests at least eight H20 cards for a system capable of running one of DeepSeek's largest and most powerful models, DeepSeek-R1 671B, at full capacity.
Another, tied to an "intelligent decision-making" support system that can also run DeepSeek, calls for four RTX 6000 graphics cards—also banned. Although the contract hasn't been finalized, a supplier was provisionally selected in June. DeepSeek didn't respond to requests for comment.
Another server request from the same month asks for an H100 graphics card— banned from export to China since 2022—which can cost tens of thousands of dollars apiece. The listing specifies that the cards must be delivered in their original packaging and installed on-site. Another AI server request published in July 2024 also calls for H100 GPUs.
The Chinese military isn't only calling for AI servers.
One project from April, for example, shows a military unit requesting a 33-pound "robot dog" with an Nvidia Jetson computing module as part of an unspecified training project. This particular request was later canceled, and Jetson modules are not barred from being exported to China for most use cases.
It's unclear whether the Chinese military actually obtained these chips. Ryan Fedasiuk, a former State Department advisor on China tech policy, says the Chinese military has many ways to acquire them.
"There are ample cutouts, subsidiaries, and shell companies that the PLA can and does use to source chips illicitly from American companies, including Nvidia," he told BI.
Nvidia plans to sell H20 chips to China again
Some national security policymakers and professionals have expressed concerns about making it easier for China to get some Nvidia chips.
Twenty of them sent a letter to the Commerce Department on Monday asking the US to reimpose the H20 ban, saying the chips would "support China's military."
"This reversal will certainly open the floodgates," said Craig Singleton, a senior director at the Foundation for Defense of Democracies who co-signed the letter.
The Commerce Department told BI that the current administration has tightened controls compared to its predecessor.
"The Trump Administration will consider any H20 license applications carefully, accounting for both the benefits and the costs of potential exports from America and taking into account the views of experts across the US Government," a Commerce spokesperson said.
'Nobody can beat Nvidia'
Fedasiuk reviewed some of the records found by BI and said they show that the Chinese military, like Chinese AI companies, wants to use the best hardware possible, and domestic chips like Huawei's don't cut it.
"In terms of sheer processing power that a given chip is capable of bringing to bear, nobody can beat Nvidia. Huawei is not close," Fedasiuk said.
Nvidia CEO Jensen Huang has downplayed such concerns, saying China's military doesn't want to rely on US technology.
"They simply can't rely on it," Huang said in July on CNN.
"It could, of course, be limited at any time."
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Axios
an hour ago
- Axios
U.S. "halfway there" with China on rare earth minerals, trade rep says
The U.S. is making progress in talks with China on access to rare earth minerals and other trade issues, but an extension to their tariff truce isn't yet final, U.S. Trade Representative Jamieson Greer said Sunday. Why it matters: The China trade relationship is of paramount importance to U.S. business leaders and financial markets, particularly the access to rare earth magnets, a crucial component for hundreds of products. That access was the core piece of the trade truce struck in Geneva in May, and the subsequent talks in London in June after the truce faltered. Both sides met again this past week in Stockholm to keep negotiating. What they're saying: " China has put a global control on the world, and so for the United States, we're focused on making sure that the flow of magnets from from China to the United States and the - and the adjacent supply chain can flow as freely as it did before the control, and I'd say we're about halfway there," Greer told"Face the Nation" host Margaret Brennan. The intrigue: The tariff-lowering truce between the world's two largest economies is due to expire on Aug. 12. After the Stockholm talks, the Chinese said it would be extended, but U.S. officials have said their counterparts got ahead of themselves. "That's something we're working toward. That's what we talked about," Greer said, adding that the final decision remained with President Trump.
CNBC
2 hours ago
- CNBC
Robotaxis are becoming a reality. Who's poised to win in China and beyond
After years of testing, robotaxis are starting to become a normal part of transportation in certain parts of the U.S. and China, where a handful of companies are competing to become market leaders. In the U.S., Alphabet's Waymo has pulled ahead of its rivals and says it has more than 1,500 robotaxis on the road conducting more than 250,000 paid weekly trips in cities including San Francisco, Los Angeles, Phoenix and Austin, Texas. Tesla has just gotten started in Austin . In China, there are proibably about 2,000 robotaxis, primarily operated by a few local companies across the country's larger cities, according to Barclays estimates published last week. The British bank forecasts at least 300,000 robotaxis will be deployed in China by 2030, accounting for at least 5% of on-demand transportation in larger cities. China's capital Beijing has allowed robotaxi operators to charge fares for rides in a suburb since late 2021 . Shanghai in late July became the latest region to allow fully autonomous taxis to charge fares in parts of the city . Pony AI unique U.S.-listed Chinese startup Pony AI is so far the only robotaxi operator in the country that can charge the public for fares in parts of all four of China's largest cities: Beijing, Shanghai, Guangzhou and Shenzhen. The company hasn't disclosed how many cars it has running, but claims each car receives an average of 15 orders a day. "We believe this milestone [in Shanghai] demonstrates Pony's technological and operational readiness in [the] robotaxi business," Bank Of America analysts said in a report last week. "Pony will scale up its Robotaxi fleet size and see improving profitability, given better economies of scale and unit profitability," the analysts said. Bank of America rates the stock a buy, and gives the American depositary receipts a price target of $21, or more than 60% upside from Friday's close. Improving safety Pony AI Chief Technology Officer Tiancheng Lou said in a late July interview that his focus now is on improving safety, speeding up the ability to hail a robotaxi and cutting costs. The company has started testing its latest-generation robotaxi vehicles in Beijing, claiming to have slashed the cost of the parts needed to build its autonomous driving kit by 70% . Pony AI is set to report its next quarterly results on Aug. 12. Pony's U.S.-listed rival WeRide last Thursday said that its robotaxi revenue in the second quarter rose to a a record $6.4 million . Morgan Stanley rates WeRide a buy, but expects shares to "remain event-driven and show more volatility" subject to robotaxi developments in China and overseas. The bank does not cover "We believe progress in global development of robotaxis will expedite the pace of China's development/rollout of L4 AD/robotaxis," the Morgan Stanley analysts said, adding they do not think legacy global automakers and legislators in major economies "will risk missing out on the transition to vehicle autonomy, particularly after losing ground to China on EVs." Waymo expansion While Waymo has only just begun expanding internationally, entering the Japanese market, Chinese robotaxi operators are already pushing into Europe and the Middle East. WeRide claims it's the only company with autonomous driving permits in Saudi Arabia, China, the UAE, Singapore, France and the U.S. Outside China, WeRide said it has already started pilot operations in Riyadh with Uber Technologies . In mid-July, Chinese internet tech company Baidu reached a deal to offer its Apollo Go self-driving vehicles on the Uber ride-hailing platform, aiming for the Middle East and Asia later this year. The U.S. and mainland China, where ride-hailing app Didi acquired Uber's business, are not part of the deal. Apollo Go's pricing on Uber will likely compare to that of human drivers on Uber, Bank of America analysts said in a separate report last month. "Therefore, we think value in [the] overseas market could be multiple times higher than China, hence its profitability overseas could have much larger room." Bank of America rated Baidu a buy, with a $100 price target. Baidu is set to report results on Aug. 20. Baidu breakeven Barclays estimates that Baidu is probably already breaking even on its robotaxis in the Chinese city of Wuhan, excluding research and investment costs. Most Chinese robotaxi operators are also close to breaking even, the analysts said. "Being able to design and build cheap robotaxi models is the single largest reason why we think Chinese players are likely to reach [unit economics] breakeven (excluding R & D and other headquarters costs) by the end of 2025," the Barclays analysts said. The bank estimates each Waymo car currently costs $200,000, Baidu's Apollo RT6 costs about $37,000, newest vehicle runs at about $42,000 and WeRide slightly more. —CNBC's Michael Bloom contributed to this report.
Forbes
3 hours ago
- Forbes
The 5 Best-Performing Stocks Of 2025 So Far: See The Leaders
As we move through 2025, the stock market continues to reward companies positioned at the intersection of technological innovation and essential infrastructure. While headline-grabbing names like NVIDIA and Microsoft have delivered solid returns, some lesser-known players have crushed the market with triple-digit gains. This analysis focuses on the standout performers among S&P 500 companies with market capitalizations exceeding $10 billion. These aren't speculative penny stocks or volatile small-caps – they're substantial businesses that have managed to capture investor imagination while delivering real operational results. From artificial intelligence enablers to energy infrastructure plays, the top performers tell a fascinating story about where smart money is flowing in the evolving market landscape of 2025. How These Top Performing Stocks Were Chosen The methodology for identifying these market leaders is straightforward but selective. I screened all S&P 500 constituents with market capitalizations above $10 billion as of July 2025, then ranked them by year-to-date percentage returns. This market capitalization threshold ensures that we're examining established companies with meaningful institutional ownership and trading liquidity, rather than smaller, speculative plays. The $10 billion cutoff eliminates the volatility often associated with smaller companies while focusing on businesses large enough to impact portfolios and broader market indices meaningfully. These companies have demonstrated their staying power and represent sectors that institutional investors consider to have sustainable competitive advantages in today's rapidly evolving economic environment. The 5 Best Performing Stocks of 2025 So Far 1. Palantir Technologies (PLTR) Palantir's stunning 113% gain represents the single best performance among large-cap S&P 500 stocks in 2025. The data analytics and software company has successfully transitioned from a government-focused contractor to a diversified enterprise software provider, with commercial revenue growing at an explosive pace. The company's Foundry platform has gained significant traction among Fortune 500 companies seeking to harness artificial intelligence for operational efficiency. What sets Palantir apart is its unique positioning in the AI value chain. Rather than competing directly with model developers like OpenAI, Palantir focuses on implementation and deployment, helping organizations utilize AI to solve real business problems. This practical approach has resonated strongly with enterprise customers who need more than just access to large language models. The company's government contracts continue providing stability, while commercial expansion drives growth acceleration. With a market cap now approaching $56 billion, Palantir has evolved from a niche defense contractor into a legitimate enterprise software powerhouse, justifying investor enthusiasm despite the stock's remarkable run. 2. GE Vernova (GEV) GE Vernova's 90% surge reflects the market's recognition of the critical role energy infrastructure plays in supporting AI and data center expansion. As the spun-off energy division of General Electric, Vernova combines traditional power generation expertise with cutting-edge grid modernization and renewable energy solutions. The company benefits from massive infrastructure spending driven by AI's voracious energy appetite. Data centers supporting artificial intelligence workloads consume exponentially more electricity than traditional computing facilities, creating unprecedented demand for reliable power generation and distribution equipment. Vernova's portfolio encompasses gas turbines, wind turbines, grid solutions and energy storage, positioning it as a comprehensive infrastructure partner for utilities and large technology companies. The company's backlog continues growing as utilities rush to upgrade aging infrastructure while adding capacity for AI-driven demand. With governments worldwide prioritizing grid resilience and clean energy transitions, Vernova sits at the center of multiple powerful secular trends that should support growth well beyond 2025. 3. NRG Energy (NRG) NRG Energy's 78% gain demonstrates how traditional utilities can thrive in the new energy landscape. The Texas-based power generator and retailer has benefited from favorable commodity pricing, extreme weather events that boost electricity demand, and strategic positioning in high-growth markets. The company's integrated model – owning generation assets while selling directly to consumers – provides natural hedging against market volatility. Texas continues experiencing rapid population and economic growth, driving consistent demand increases for NRG's services. The state's deregulated electricity market allows NRG to capture value both as a generator and retailer, creating multiple revenue streams that traditional regulated utilities cannot access. Additionally, the company has made strategic investments in battery storage and renewable generation to complement its existing assets. NRG's focus on cash generation and shareholder returns has attracted income-focused investors seeking exposure to the energy transition. The company maintains a disciplined approach to capital allocation while benefiting from structural tailwinds in electricity demand, particularly from industrial customers and data center operators establishing facilities in Texas. 4. Howmet Aerospace (HWM) Howmet Aerospace's 70% appreciation reflects the aerospace industry's robust recovery and the company's specialized positioning in advanced materials and components. As a leading supplier of engineered products for aerospace and defense applications, Howmet benefits from both the return to growth in commercial aviation and increased defense spending driven by global security concerns. The company's advanced manufacturing capabilities in titanium, aluminum and nickel-based superalloys make it indispensable to aircraft manufacturers such as Boeing and Airbus. These materials require sophisticated processing techniques that create significant barriers to entry, allowing Howmet to maintain strong margins even as the industry scales up production. Long-term contracts with original equipment manufacturers provide revenue visibility and pricing power. Defense applications represent another growth driver, with governments worldwide modernizing their military aircraft fleets. Howmet's components are critical for next-generation fighter jets and defense systems, creating a stable revenue base that complements cyclical demand in the commercial aerospace sector. The company's technical expertise and manufacturing scale position it well for continued outperformance. 5. Seagate Technology (STX) Seagate's 67% rally reflects the transformation of the data storage industry, driven by the growing demands of artificial intelligence and cloud computing. While solid-state drives have captured consumer mindshare, traditional hard disk drives remain essential for hyperscale data centers requiring massive storage capacity at reasonable costs. AI training and inference generate enormous data sets that must be stored efficiently and accessed reliably. The company has successfully repositioned itself from a consumer-focused commodity manufacturer to a provider of enterprise infrastructure. Cloud service providers, such as Amazon, Microsoft and Google, require petabytes of storage capacity, and Seagate's high-capacity drives offer the most cost-effective solution for "cold" data storage. This market dynamic has significantly improved pricing power and margins. Seagate's investments in advanced recording technologies, including heat-assisted magnetic recording (HAMR), enable higher storage densities that maintain the company's competitive edge. As data generation accelerates across industries, Seagate benefits from structural demand growth that is expected to persist regardless of broader economic conditions. Honorable Mentions While NVIDIA's 25% gain might seem modest compared to our top five, the chip giant's massive $4 trillion market cap makes percentage moves more challenging to achieve. Similarly, Microsoft's 12.2% and Meta's 18.5% returns represent solid performance for megacap technology stocks, though they were outpaced by more specialized players positioned in high-growth niches. Bottom Line The 2025 market leaders share common themes: exposure to artificial intelligence infrastructure, energy transition dynamics and specialized market positions that create competitive moats. These aren't momentum plays or speculative bets – they're established companies benefiting from powerful secular trends reshaping the global economy. While past performance doesn't guarantee future results, these standout performers demonstrate how identifying the right structural trends can generate exceptional returns even among large, established companies.
