Nvidia AI chips worth $1bn smuggled into China after Trump export controls

In the three months following tightened U.S. export controls under the Trump administration, over $1 billion in NVIDIA’s advanced AI chips, primarily the B200, were smuggled into China, highlighting the challenges of curbing Beijing’s access to cutting-edge technology. The B200, used by U.S. tech giants like OpenAI and Google for AI training, is banned for sale in China, yet it dominates a thriving black market.

Chinese distributors in Guangdong, Zhejiang, and Anhui sold these chips, often in pre-built racks from U.S. assembler Supermicro, at a 50% premium over U.S. prices, with racks priced between $489,000 and $4 million.

A key player, Anhui-based “Gate of the Era,” sold nearly $400 million in B200 racks since mid-May, sourced through intermediaries and shipped via southeast Asia or Europe. “It’s like a seafood market,” one distributor said, noting the open trade on platforms like Douyin. While legal to sell these chips in China with tariffs, exporting them violates U.S. law.

NVIDIA denies involvement, stating, “Trying to cobble together data centres from smuggled products is a losing proposition, both technically and economically,” due to lack of authorized support. Despite relaxed H20 chip restrictions, demand for advanced chips persists.