Global smuggling reroutes Nvidia chips to China

Investigations reveal that international smuggling networks are rerouting prohibited AI chips from Nvidia to China, violating U.S. national security regulations. These networks rely on a complex distribution web involving external suppliers and intermediaries, exploiting loopholes in compliance procedures, especially in countries like Thailand, Malaysia, and Singapore. The investigations have uncovered the involvement of companies and individuals in smuggling devices containing high-tech chips, with estimates indicating that the stolen chips continue to be used by Chinese AI companies. Although Nvidia has denied any evidence of involvement, the smuggling hampers regulatory efforts and makes tracking these operations more difficult amid a partial relaxation of American restrictions.

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