Massive Smuggling Operation Uncovered

In a startling revelation, the Financial Times has reported that advanced artificial intelligence semiconductors from Nvidia Corp., valued at over $1 billion, have been smuggled into China. This illicit trade flourished in the three months following the United States' decision to tighten chip export controls.

The Black Market's Favorite

Among the smuggled items, the B200 chip stands out as the most sought-after in the Chinese black market. Despite its widespread use by leading US firms such as Google LLC, Meta Platforms Inc., and OpenAI Inc., China is barred from purchasing this processor due to Washington's stringent restrictions.

Nvidia's Stance

Nvidia has firmly denied any involvement or knowledge of these activities, stating, "no evidence of any AI chip diversion" exists. The company emphasized the impracticality of relying on smuggled goods for data centers, highlighting the lack of service and support for unauthorized products.