Nvidia Chip Smuggling Case Exposed In $160M U.S. Crackdown On China Shipments

Benzinga

U.S. authorities dismantled a China-linked network that trafficked over $160M in export-controlled Nvidia AI chips, part of a wider crackdown on illicit GPU flows tied to national-security risks. Nvidia said controls remain strict as Washington tightens enforcement and approves limited H200 sales in China.

Transcript

00:00It's Benzinga, bringing Wall Street to Main Street.

00:03U.S. authorities shut down a China-linked smuggling network that trafficked or attempted

00:07to traffic more than $160 million in export-controlled NVIDIA AI chips, according to CNBC.

00:14Two businessmen were taken into custody, and a Houston company and its owner pleaded guilty

00:18as part of the broader investigation. Prosecutors said Operation Gatekeeper revealed attempts to

00:24route advanced AI chips to entities that could threaten U.S. national security.

00:28NVIDIA said export controls remain rigorous, and that it continues working with the government

00:33to prevent second-hand GPU smuggling. The case comes as Washington tightens enforcement,

00:39while the president signaled approval for NVIDIA to ship H200 chips to approved customers in China

00:43with a 25% profit share for the U.S. For all things money, visit Benzinga.com.

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