U.S. Authorities Uncover $160M Nvidia GPU Smuggling Ring Targeting China
Federal prosecutors have dismantled a sophisticated smuggling operation funneling Nvidia's high-end H100 and H200 GPUs to China. The scheme allegedly involved counterfeit companies, illicit border crossings, and relabeling tactics to evade export controls. Operation Gatekeeper revealed China's continued reliance on foreign AI chips despite domestic production pushes.
Undercover agents infiltrated a New Jersey warehouse where suspects rebranded Nvidia hardware as mundane electronics like 'adapters' for clandestine shipment. The investigation highlights how advanced computing power has become a geopolitical commodity, with authorities intercepting three truckloads of misdeclared GPUs bound for international waters.