Three Charged in Alleged $170 Million Nvidia AI Chip Smuggling Plot
Summary
U.S. prosecutors charged three men with allegedly trying to route 600 export-controlled Nvidia A100/H100-equipped servers to China through a Thailand-based front company in a $170 million order. Company concerns, a tip and seized messages aided investigators.
Key points
- Three men were charged with conspiring to commit smuggling and export-control violations; the allegations have not been established in court.
- In October 2023, a defendant allegedly ordered 750 servers for about $170 million through a Thailand-based company; 600 contained chips requiring a license for export to China.
- The alleged scheme targeted Nvidia A100 and H100 GPUs subject to U.S. export controls.
- The manufacturer questioned the order's circumstances, and Nvidia and Supermicro employees noticed irregularities; orders were canceled early in 2024.
- A tipster alerted investigators in January 2024. Agents seized a defendant's phone and laptop in February 2026 and accessed WhatsApp messages between the suspects.
- The charges carry potential sentences totaling more than 20 years.
Article Details
- Event Type
- Federal criminal charges alleging a conspiracy to smuggle export-controlled AI chips to China through Thailand.
- Impact
- Prosecutors allege the defendants sought 750 servers worth approximately $170 million, including 600 containing controlled chips. Nvidia and Supermicro employees reportedly flagged irregularities, and the orders were canceled in early 2024. The defendants face smuggling and export-control conspiracy charges carrying potential combined sentences of more than 20 years.
People
Matthew KellyOne of three defendants charged with allegedly conspiring to obtain export-controlled computer servers and divert AI chips to China through Thailand. Investigators reportedly accessed WhatsApp messages after seizing his phone and laptop.Stanley Yi ZhengOne of three defendants charged with allegedly conspiring to obtain export-controlled computer servers and divert AI chips to China through Thailand.Tommy Shad EnglishOne of three defendants charged with allegedly conspiring to obtain export-controlled computer servers and divert AI chips to China through Thailand. Prosecutors say he placed an order for 750 servers in October 2023 while purporting to act for a Thailand-based company.
Vendors
NvidiaFederal prosecutors charged three men with allegedly conspiring to route export-controlled Nvidia A100 and H100 GPUs to China by placing a $170 million order for 750 servers through a Thailand-based front company.Supermicroa hardware and services company based in San Jose, with a purchase order for server units running Supermicro hardware designed to support Nvidia H100 and H200 GPUs, totaling nearly $62 million for one tranche
Products
Nvidia A100Federal prosecutors charged three men with allegedly conspiring to route export-controlled Nvidia A100 and H100 GPUs to China by placing a $170 million order for 750 servers through a Thailand-based front company.Nvidia H100in San Jose, with a purchase order for server units running Supermicro hardware designed to support Nvidia H100 and H200 GPUs, totaling nearly $62 million for one tranche alone.
Countries
ChinaFederal prosecutors charged three men with allegedly conspiring to route export-controlled Nvidia A100 and H100 GPUs to China by placing a $170 million order for 750 servers through a Thailand-based front company.ThailandFederal prosecutors charged three men with allegedly conspiring to route export-controlled Nvidia A100 and H100 GPUs to China by placing a $170 million order for 750 servers through a Thailand-based front company.United StatesThree defendants are accused of conspiring to smuggle export-controlled AI chips from the U.S.