"Federal prosecutors have charged four people with illegally smuggling Nvidia GPUs and HP supercomputers with Nvidia GPUs from the US to China, according to a court filing spotted by Court Watch. The US government has placed restrictions that prevent Nvidia from selling its most powerful chips for AI training to China, but Chinese companies like DeepSeek have still created competitive AI models."
"After DeepSeek released its R1 model earlier this year, Scale CEO Alexander Wang said he thinks China has far more of Nvidia's H100 AI chips than people may think, despite the export controls, and operations like this may help explain how. Nvidia, which reported quarterly earnings of a record $57 billion in revenue on Wednesday. According to the documents, only one person has been arrested so far, while the four are facing charges including smuggling, conspiracy, and money laundering."
Federal prosecutors charged four people with illegally smuggling Nvidia GPUs and HP supercomputers from the US to China. The US has export restrictions preventing sales of Nvidia's most powerful AI training chips to China. Chinese firms like DeepSeek have nevertheless developed competitive AI models, and Scale's CEO suggested China may possess more H100 chips than expected. The charges include smuggling, conspiracy, and money laundering. Only one person has been arrested so far. The alleged scheme reportedly began in late 2023 and included shipments such as 50 H200 GPUs.
Read at The Verge
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