Jeffrey A. Newman
Servers used in a fraud case that Singapore authorities have announced were supplied by a US firm and may have contained Nvidia’s advanced chips. One Chinese national and two other mend were charged with fraud in the case to the transfer of Nvidia’s AI chips from Singapore to a Chinese articifical intelligence firm DeepSeek. Singapore Minister said that Singapore has asked the U.S. authorities if the servers contained U.S. export control items, and told them it would work with them in any joint investigation.
According to a Wall Street Journal Report, Black market traders in China are securing the chips through intermediaries in Malaysia, Vietnam, and Singapore. The unanswered question now is how did they obtain such large quantities of the powerful AI chips from Nvidia and whether anyone from Nvidia knew they might be sending them to China?
According to reports, the case is part of a much broader police investigation of 22 individuals and companies suspected of false statements to authorities about the chips, amid concerns that organised AI chip smuggling to China is being run out of Singapore and possibly Malaysia. The powerful Nvidia chips are restricted under US export laws as the US is concerned they will be used to assist the Chinese Military to develop weapons and AI that would exceed US capabilities.
The Wall Street Journal reported this weekend that Nvidia’s latest Blackwell chips are being offered in China through companies in other Asian countries. That has investors fearing other countries — including Singapore, Vietnam, and others — could be added to a sanction list for Nvidia’s highest-powered chips.
The sale of the high powered Nvidia chips to Chinese companies would be a violation of US restrictions.
Jeff Newman JD MBA, represents whistleblowers nationwide relating to customs and tariff fraud concerning imported Chinese goods as well as corporate whistleblowers in major claims under the False Claims Act (Qui Tam), and SEC, IRS and FINCEN whistleblower programs. He can be reached at Jeff@JeffNewmanLaw.com or at 617-823-3217
