Texas authorities have made multiple arrests in an NVIDIA GPU smuggling operation

""Operation Gatekeeper has exposed a sophisticated smuggling network that threatens our Nation's security by funneling cutting-edge AI technology to those who would use it against American interests," said US Attorney Nicholas J. Ganjei. The investigation had been ongoing since at least last year and centers on the illicit export or attempted export of at least $160 million worth of NVIDIA H100 and H200 GPUs."

"The smuggling operation used a combination of falsified paperwork, purposefully misclassified goods, straw purchasers and even removing the NVIDIA labels on GPUs to ship them to both mainland China and Hong Kong. The conspirators face between 10 and 20 years in prison if convicted. The H200 chips in question are more powerful than the H20 chip specifically designed to comply with US export restrictions."

"The Southern District of Texas the seizure of more than $50 million in NVIDIA GPUs bound for China in violation of US export laws. Authorities arrested two businessmen, one of them the owner of a Houston company, accused of smuggling the chips used to train and run AI models. Illicit sales to China are nothing new and occur against the backdrop of an AI technology race and tight export controls. NVIDIA is still prevented from selling its highest-end Blackwell chips to China."

Conspirators orchestrated the illicit export or attempted export of at least $160 million worth of NVIDIA H100 and H200 GPUs to mainland China and Hong Kong. Federal authorities in the Southern District of Texas seized more than $50 million in GPUs and arrested two businessmen, including a Houston company owner, accused of smuggling chips used to train and run AI models. Operation Gatekeeper uncovered falsified paperwork, misclassification, straw purchasers, and removal of NVIDIA labels to conceal shipments. The H200 chips are more powerful than the export-compliant H20; production of the H20 was reportedly halted after a revenue-sharing deal. High-end Blackwell chips remain restricted.

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