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Tom’s Hardware
Tom’s Hardware
Technology
Anton Shilov

Underground network smuggles Nvidia's AI GPUs into China despite US sanctions — some smugglers even sell entire servers

Nvidia.

Despite U.S. restrictions aimed to limit access of China-based entities to advanced AI and HPC processors, a network of buyers, sellers, and couriers is bypassing the U.S. export controls on Nvidia's processors crucial for training AI systems. Over 70 distributors openly advertise these chips online, with many promising delivery in weeks and some even selling entire servers, reports the Wall Street Journal. 

Last fall, a 26-year-old Chinese student smuggled Nvidia AI processors from Singapore to China. The student packed six Nvidia compute cards (or modules) alongside his personal belongings. Each add-in-board, about the size of a Nintendo Switch, somehow went unnoticed at the airport. He declared the value at $100 per card, a small fraction of their underground market value, and yet it didn't raise any suspicion neither in Singapore (which is not interested in smuggling advanced technology to China) nor in China (which is interested in getting advanced technology but is also interested in getting import duties). 

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