Nvidia Manager Indicted Over AI Server Smuggling Ring
Nvidia Manager Indicted in AI Server Export Smuggling Case
A senior Nvidia manager, Chang, and eight others have been indicted for allegedly smuggling high-powered AI servers to China. The group used fake paperwork and a complex network of companies to ship the servers through Japan and Indonesia.
The scheme started in February 2025 when Flying Tiger's owner created a company in Japan to act as a transfer hub. This was added to Nvidia's approved customer list, allowing the group to bypass US export controls. Super Micro made the servers, with two of its employees being indicted along with Chang and others.
The plan hit a snag in September when Chang and an indicted Super Micro employee brought unsuspecting colleagues to Chief Telecom, where the servers were supposed to be housed. They hid the fact that Flying Tiger had not leased enough space, then told Nvidia executives the on-site check was done.
Nvidia says it sells mainly to well-known partners like OEMs, who build the chips into servers, to ensure all sales follow US export rules. A spokesperson called smuggling 'a nonstarter.' Super Micro said it has 'zero tolerance' for anyone who breaks the law.