Feds bust nefarious plot to ship Nvidia H200s to China and hurt US

Three US-based businessmen face potential prison sentences after authorities dismantled a smuggling network accused of funneling hundreds of millions of dollars worth of Nvidia GPUs to China.

The US Department of Justice said the network directly threated US security by seeking to put cutting edge AI technology in adversarial hands.

Nicholas J. Ganjei, U.S. Attorney for the Southern District of Texas, said: “These chips are the building blocks of AI superiority and are integral to modern military applications. The country that controls these chips will control AI technology; the country that controls AI technology will control the future.”

Ganjei’s stark warning to anyone plotting to send Nvidia’s top end chips to China came as US President Donald Trump gave the green light to Nvidia to ship its H200 parts to China, with Washington taking a 25 percent cut.

Trump announced on Truth Social that neither Nvidia’s ...