$1B Nvidia AI Chips Smuggled into China, FT Reports

Advanced Nvidia AI chips valued at over US$1 billion were allegedly smuggled into China, according to a report by the Financial Times (FT), raising fresh concerns about the enforcement of US export restrictions on sensitive technology.

The banned B200 processors, designed for high-performance AI workloads, were reportedly sold on the Chinese black market, with sales contracts and company filings pointing to distributors in Guangdong, Zhejiang, and Anhui provinces. These high-end chips fall under US export controls, which prohibit their sale to China over national security concerns. The FT report suggests that Chinese firms acquired them through indirect routes, with Southeast Asian countries emerging as major alternative hubs for restricted chip access.

Key Highlights

• FT reports $1B worth of Nvidia AI chips smuggled into China
• B200, H100, and H200 processors reportedly sourced via Southeast Asia
• Nvidia warns of inefficiency and disavows unauthorized product use

The report also highlights that processors like Nvidia’s H100 and H200 were among those circulated through unauthorized channels. Nvidia, responding to the allegations, emphasized that using smuggled hardware for data centers is inefficient both technically and financially, and reiterated that it supports only authorized sales. The company declined to comment further on black market activities.

Meanwhile, the US Department of Commerce, the White House, and the Thai government—which was mentioned in the report—have not issued official responses. Reuters noted it could not independently verify the Financial Times’ claims.

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The report highlights growing tensions over access to advanced semiconductors, particularly as AI becomes increasingly strategically important. It also reveals the vulnerabilities in global tech export controls and enforcement across loosely regulated regional markets.