NVIDIA's Smuggling Problem Is Getting Worse
Following a high-profile arrest, some officials believe the company isn't doing enough.
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US prosecutors just charged a man with smuggling NVIDIA chips to China, and government officials are saying the company isn't doing all it could to stop the illegal activities, Bloomberg reported.
Earlier this year, officials released a surveillance video showing someone using a red hair dryer to peel serial number stickers off NVIDIA server boxes in an effort to sneak AI chips to China. And yesterday, federal authorities arrested a man named Greg Lui for smuggling servers containing $300 million worth of AI chips to China, in violation of US export laws.
Those efforts reportedly show how an expanded network of criminals is attempting to reroute NVIDIA's AI chips to China, profiting from Washington's export controls that make the contraband silicon valuable. NVIDIA says it has abided by the rules and the company has never...
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