Nvidia Manager Indicted Over Alleged Scheme to Ship AI Chips to China

Taiwanese prosecutors have indicted a senior Nvidia manager and eight others over an alleged scheme to ship AI chips to China. The core figure in this operation is a manager surnamed Chang, who allegedly orchestrated the smuggling of 74 servers containing high-end B300 chips through Japan and Indonesia.

The indictment marks the first known criminal case against an Nvidia employee for AI chip smuggling. Prosecutors are seeking five years in prison for forgery and breach of trust. The charges include two senior Super Micro employees and staff from four more firms, including Albatron and Flying Tiger, which was named as the purported end user.

The alleged scheme involved bypassing security checks by Nvidia and Super Micro's Taiwan arm. Chang and one of the indicted Super Micro employees took 'unsuspecting' colleagues to a data centre and concealed that Flying Tiger had never leased enough space for the hardware.

Nvidia has since cut more than half its Asian customers from its whitelist, which allowed certain buyers to purchase chips without additional scrutiny. The company's decision follows an investigation by Taiwanese authorities, who collaborated with American regulators to uncover the alleged smuggling operation.