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  "documentTitle": "2025 Air Street Capital The State of AI Report 2025",
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      "text": "During the temporary H20 ban, $1B worth of NVIDIA chips were smuggled to China.",
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      "text": "Smuggling patterns appeared to intensify during the ban, with a sharp drop off following the reversal. Based on this relationship, Chinese AI efforts seem to prefer defanged NVIDIA chips over domestic offerings and smuggled GPUs, which carry markups, compliance risks, and lacking support. Sliding-scale restrictions could work to weaken China’s smuggling muscle, directing more SOTA chips to the West.",
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      "text": "Similarly, NVIDIA, who long maintained a stance denying any evidence of diversions, finally recognized ongoing smuggling. NVIDIA framed such activity as a “losing proposition,” since they only provide service for authorized data center products. Steps to prevent future diversions are technically feasible through location-based attestation firmware, yet these mitigations are not completely bulletproof.",
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