US Probes Logistics Firm Over Alleged Chip Smuggling to China Amid Nvidia's Record Acquisition Binge

The US government is expanding its enforcement of export controls on AI chips by investigating Singapore-based Apex Logistics for its suspected role in smuggling Nvidia AI chips to China. This move marks a significant widening of Washington's enforcement perimeter, targeting not only chipmakers but also transportation companies allegedly involved in the illegal semiconductor trade.

Nvidia is pushing forward with its acquisition spree, nearing a $13 billion deal for Hugging Face, a widely used platform for sharing AI models. This acquisition would extend Nvidia's dominance in the AI stack, which it has forecast to drive 70% revenue growth in fiscal 2028.

The investigation into Apex Logistics comes after Washington imposed export controls on AI chips in 2022 due to concerns that the technology could benefit Beijing's military. The probe may result in the first action taken against a transportation company for allegedly participating in the illegal semiconductor trade.