According to recent reports in the Wall Street Journal and other news sources, buyers in China are actively evading U.S. export controls ordering Nvidia’s top articifial intelligence chips. The buyers are routing them through third parties in Vietnam, Taiwan and Malaysia. It is unclear how much Nvidia knew or should know about this activity. A recent WSJ article referenced one buyer who admitted that he used entities registered outside of China to purchase Nvidia servers from those three countries and that the companies in question inclde data-center operators and aithorized Nvidia customers to buy servers for their own use and resell a portion to China.
Nvidia indicated that it will investigate every report of possible diversion. Its Blackwell server containing eight AI processors could retail for more than $600,000 in China, which would cost about $250,000 typically.
According to reports chips are now being sold as part of complete systems manufactured by device makers such as Dell and Super Micro Computer. Nvidia faces another problem today because of the new Tariffs placed on Mexico as its contract manufacturer Foxconn is building the world’s largest factory for assemblig servcers with Nvidia;s Blackwell chips in Mexico. There will be added tariffs for those products.
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
