SMC contractor admits to illegally exporting NVIDIA chips to China
What's the story
A contractor associated with Super Micro Computer has pleaded guilty to illegally exporting advanced NVIDIA AI chips in computer servers to China. The plea was entered on Thursday in the US District Court in Manhattan, according to court documents. The alleged scheme, which started around 2024, involved using a Southeast Asia-based company as a pass-through entity to conceal the China-based end customers.
Legal charges
In March, 3 Super Micro associates were charged
In March, US prosecutors charged Ting-Wei "Willy" Sun and two other Super Micro associates with conspiring to divert some $2.5 billion worth of US AI technology to China in violation of export laws.
The indictment specifically mentioned that NVIDIA's B200, H100 and H200 graphics processing units (GPUs), along with servers containing them, are on the Commerce Control List and subject to restrictions due to national security concerns.
Geopolitical tension
Case highlights growing US-China rivalry in AI technology
The case highlights the growing US-China rivalry in artificial intelligence (AI) technology.
Both countries are investing billions of dollars into this critical tech for economic growth, national security, and military and cybersecurity capabilities.
In response to these concerns, Washington has tightened export controls on advanced AI chips and server systems to China without a license.