US Uncovers $160M Nvidia H100, H200 GPU Smuggling to China Amid Trump’s Export Shift
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Federal prosecutors uncovered a $160 million smuggling ring that shipped Nvidia H100 and H200 GPUs from U.S. warehouses to China between October 2024 and May 2025, using fake companies, mislabeling, and illegal border tactics to evade export controls on these critical AI chips. New Jersey warehouse bust: Undercover agents seized trucks loaded with mislabeled Nvidia GPUs headed for China. Operation targeted high-end AI hardware vital for computing power in civilian and military applications. Center for a New American Security estimates 10,000 to hundreds of thousands of AI chips smuggled to China in the past year. Nvidia H100 H200 smuggling ring busted: $160M operation exposed. Discover how U.S. agents stopped illegal exports to China fueling AI boom. Stay updated on chip trade risks today! What is the Nvidia H100 and H200 GPU smuggling ring to China? Nvidia H100 and H200 GPU smuggling to China involved a sophisticated operation that moved $160 million worth of restricted AI chips from U.S. facilities to Chinese buyers from October 2024 to May 2025. Federal prosecutors detailed fake companies, product relabeling as mundane electronics, and covert shipping methods. The scheme, dubbed Operation Gatekeeper, highlighted vulnerabilities in enforcing export restrictions on advanced semiconductors essential for AI development. How did U.S. authorities bust the Nvidia GPU smugglers in New Jersey? Federal agents infiltrated a Secaucus, New Jersey warehouse by planting an undercover operative who witnessed suspects rebranding Nvidia H100 and H200 GPUs under the fictitious “Sandkayan” label. The chips were disguised as harmless items like adapters and contactor controllers to bypass customs. On May 28, 2025, as three trucks prepared to depart, a tip about police inquiries prompted panic in the smugglers’ group chat, leading to an order to dissolve it. Agents raided the site, confiscating the cargo before export. Prosecutors note this as part of a pattern,…
Filed under: News - @ December 31, 2025 7:28 pm