09:05 AM EDT, 07/03/2024 (MT Newswires) -- (Updates with Nvidia's ( NVDA ) response in the fourth paragraph.)

Nvidia's ( NVDA ) advanced AI chips are being sold to Chinese buyers through a barely concealed network that circumvents Biden administration restrictions, The Wall Street Journal reported on Tuesday.

More than 70 distributors openly advertise the chips online, the Journal reported, with many saying they have supplies amounting to dozens of the high-end Nvidia ( NVDA ) chips each month.

The Commerce Department, which oversees enforcement of the US restrictions, didn't respond to requests for comment, the Journal said.

"We sell our datacenter GPUs primarily to well-known partners, including OEMs, system builders, integrators, and ODMs, who work with us to ensure that all sales comply with US export control rules," an Nvidia ( NVDA ) spokesperson told MT Newswires. "We apply the same standard to all transactions, large or small, and expect our partners to do the same."

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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