China Dark Compute Model

Working draft

China Dark Compute Model

Question
# of H100e China holds, unknown to the verifier, at the end of the audit period after the agreement's entry into force.
In scope
China only. Accelerators assembled by the agreement's entry into force, including chips Chinese entities control abroad.
Out of scope
Powering and hiding the chips, acquisition after the agreement's entry into force, and extra capacity in known chips.

How to read the diagrams

User settinga scenario knob you set
Exogenous inputdata or forecasts from outside the model
China's choicewhat the hider decides
Verifier / detectionhow hard hidden chips are to find
Computedfollows from the boxes feeding it
Outputwhat the model reports
Solid arrowschip counts (H100e) flowing from one box into the next
Dotted arrowsa setting or parameter that affects the box it points to; turn off “Show parameter links” to see them only on hover or selection

AI 2040's model, as published

Hold Ctrl or ⌘ and scroll to zoom, or pinch
Redrawn from AI 2040 Covert AI Projects §2.3 (Method #1). Values are as published; the H100e figure for each route is our conversion of its published share of 289M H100e. The orange mark flags an input whose derivation looks inconsistent.

Reproduction check

Running…

Proposed model

The model runs on a calendar with four periods:

  • Baseline period. Business as usual from Q4 2026: smuggling and legal imports continue, and nobody is diverting chips.
  • Diversion period. Once an agreement looks likely, China starts moving chips into hidden stock.
  • The agreement's entry into force. China declares its chips. Whatever it hid is counted here.
  • Audit period. Supply-chain audits to look for undeclared chips.
Inputs Defaults

All settings

Preset: Defaults.

Settings are grouped like the diagram. Click a box title to find it in the diagram, where the same settings sit in its details panel. A dot marks a setting changed from the loaded inputs; ↺ puts it back. Greyed settings have no effect with the current choices.

Hold Ctrl or ⌘ and scroll to zoom, or pinch
Box values come from the latest simulator run: settings as entered, and uncertain quantities as 10th / 50th / 90th percentiles across its draws, in H100e. Select a box to change its settings in the details panel. U = chips hidden with no gap on record; L = chips that are known-missing (the verifier is aware of a gap, but can't locate the chips).

Results at the end of the audit period

Distribution of dark compute

By route

What changes

AreaAI 2040Proposed
TimelineOne 1-year window ending at the 2029.0 dealA baseline period (business as usual), a diversion period, the agreement's entry into force and an audit period, with lengths you set, starting Q4 2026
InputsTwo world-stock snapshots and fixed shares from an older data sheetQuarterly trajectories from the Compute supplement page and Epoch; AI 2040's snapshot is a data option
Smuggling2% of 2028 world sales, with better enforcement built inStatus-quo share × enforcement multiplier × diversion surge, capped by network capacity
EnforcementNot a variableMechanisms with start dates acting on three levers: flow volume, recorded custody, verifier uncertainty
TraceabilityA fixed 25% of smuggled chips untraceableRecorded share per arrival cohort, set by enforcement
Earlier smuggled chipsDivertible only through false decommissioning, because installed chips "cannot be removed without explanation"New route R4: unrecorded chips gathered and left off the declaration, plus seized chips held back
Chips abroadNo route, though the inputs include ≈6.15M H100e of offshore and leased compute by end-2028Declaration by ownership and control. New route R5 (fronts, buy-outs of leased chips). Capacity leased from non-PRC owners is shown separately as known. Host-country cooperation during the audit period
InventoryNot modeledNew route R6: finished chips undeployed or in transit at the agreement's entry into force
Declaration thresholdNot modeledOptional setting. Chips below it are legal, undeclared and never searched; they count toward the share of China's compute outside verification, not toward the dark headline
DetectionBuilt into fixed feasibility odds and the untraceable shareAudit period: access level, a top-down check against the verifier's uncertainty σ (flagged chips become known-missing and are searched harder), per-route survival
Feasibility oddsYes/no draws in the routes: 60%, 25%, 100%Moved to the audit period as the chance each coordinated scheme is exposed, set by access level. Applied once, so detection is not counted twice
OutputMedian share of world compute at 2029.0, mixing unknown and known-missing chipsH100e at the end of the audit period, split unknown vs known-missing, plus the share of China's compute outside verification; means and medians
Appendix routeRetroactive understatement of domestic production, excludedFolded into R2 for all domestic output before diversion
BaselinesNot neededStatus-quo traceability (smuggled ≈75% recorded, from AI 2040's 25% untraceable) and verifier uncertainty (±10%), which enforcement mechanisms improve

Sensitivity

Sensitivity analysis

How much each input moves dark compute, starting from the inputs currently set in the simulator. Two views: each input changed on its own between a low and a high setting, and sweeps across the main continuous inputs. Every run uses the same random numbers, so differences come from the inputs, not sampling noise.

Starting…

Effect of each input on its own

Each bar changes a single input to a low and a high value, while every other input stays at its current simulator setting. The vertical line is the current result, so a longer bar means the result depends more on that input. Hover an input's name for what it means.

Sweeps