Chinese tech giant Inspur is reportedly bypassing U.S. export restrictions on advanced AI chips. The company remains on a U.S. government blacklist due to its ties to the Chinese military.

Inspur allegedly utilizes a network of subsidiaries and partners to acquire high-end processors. California-based Aivres Systems Inc., formerly known as Inspur Systems Inc., is identified as a key intermediary.

Aivres Systems reportedly purchases the latest AI chips from suppliers like Nvidia and resells them. The entity avoids restrictions because it is not individually named on the U.S. entity list.

This strategy highlights a potential loophole in export controls intended to prevent Chinese military modernization.