Summary
U.S. authorities stopped a network smuggling advanced Nvidia AI computer chips to China and arrested two Chinese nationals connected to the operation. On the same day, President Donald Trump allowed Nvidia to sell its advanced chips to approved buyers in China. The Department of Justice noted the smuggling involved deceitful shipping practices to bypass U.S. export laws.
Key Facts
- U.S. authorities broke up a smuggling network involving Nvidia AI chips to China.
- The Department of Justice (DOJ) detained two Chinese nationals linked to the operation.
- A company in Houston pleaded guilty to smuggling and unlawful exporting activities.
- Over $50 million in Nvidia computer chips and cash were seized by U.S. authorities.
- The smuggled chips were high-speed GPUs used for AI and other applications.
- The GPUs were disguised and mislabeled to avoid detection and illegally shipped to China.
- The operation involved wire transfers from China exceeding $50 million to fund the smuggling.
- President Donald Trump permitted Nvidia to sell chips to approved customers in China on the same day of the DOJ announcement.
