Nvidia Probes AI Chip Smuggling to China Under U.S. Export Controls

The U.S. Commerce Department has tasked Nvidia with investigating how its restricted AI chips are reaching Chinese buyers through illicit channels.

The U.S. Department of Commerce has asked Nvidia to investigate the unauthorized flow of its high-end AI chips to China, bypassing strict export restrictions.
Nvidia has instructed major distributors, including Supermicro and Dell, to conduct spot checks on Southeast Asian customers to ensure compliance with export controls.
Smugglers reportedly use advanced techniques such as duplicating or altering server serial numbers to evade inspections and export restrictions.
The Biden administration has tightened export controls to curb China's access to advanced AI technologies, citing national security concerns, but enforcement challenges persist.
Supermicro and Dell have reaffirmed their commitment to compliance, with Nvidia emphasizing that unauthorized sales harm its business rather than benefit it.