DOJ Alleges $160M Nvidia Chip Smuggling Ring Targeted China
US Department of Justice lawsuit claims smugglers illegally exported or attempted to export advanced Nvidia AI chips worth at least $160M to China.
The US Department of Justice filed a lawsuit in December alleging a smuggling operation illegally exported — or attempted to export — at least $160 million worth of advanced Nvidia AI chips to China.
The case centers on a ring that circumvented US export controls designed to keep cutting-edge AI hardware out of Chinese hands. The chips in question include Nvidia's advanced H200 processors, among the most powerful AI accelerators on the market.
The timing is notable. President Donald Trump had announced in December that Washington would allow Nvidia to sell its H200 chips to China — but apparently not everyone was waiting for the green light.
The scale of the alleged operation is staggering. $160 million buys a lot of AI compute, and the case underscores just how valuable — and contested — advanced semiconductor access has become in the US-China tech rivalry.