At least $ 1 billion in Nvidia’s computer chips were smuggled in China in the three-month space after President Trump put export controls on the front chips, according to a bomb report on Thursday.
Powerful Nvidia B200 IPIP – favored by American technology giants such as Openai and Google to empower their artificial intelligence patterns – are prohibited for sale in China due to government rules restricting deliveries for chips exceeding certain performance thresholds.
However, Chip was still being sold in May by Chinese suppliers for database operators supporting China -based technology firms, Financial Times reported, citing an analysis of sales contracts, company enrollments and interviews with direct knowledge of agreements.
“Export checks will not prevent the most advanced Nvidia products from entering China,” said a Chinese data center operator for FT. “What it creates is simply inefficiency and great profits for the middle men of taking risk.”
In May, the Trump administration had banned the Nvidia from selling the less powerful H20 chips that were specifically built by the company to adhere to previous export controls located on their most powerful chips during the Biden administration.
However, Nvidia chief Jensen Huang revealed last week that Trump had changed the course and would allow H20 chips to be sold to China.
Critics have argued that China -based companies were bypassing export controls to obtain the Nvidia device. This speculation increased earlier this year after reporting that the China -based Deepseek’s firm had a larger supply of Nvidia chips than publicly accepted.
Ft said it examined the evidence that Chinese distributors in Guangdong, Zhejiang and Anhui provinces had sold B200 to Nvidia and other limited chips such as H100 and H200.
FT said there was no evidence that Nvidia had any involvement or knowledge of illegal chip sales for Chinese entities.
The company has long said it compresses all US laws on chip technology.
“Trying to collect data centers together from smuggled products is a loser proposal, both technically and economically,” Nvidia said in a statement. “Data centers require service and support, which we only offer to authorized Nvidia products.”
Last month, the chip supplier became the first public company in history to exceed a $ 4 trillion market valuation.
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