Three people have been charged with illegally exporting NVIDIA GPUs to China

The GPUs were placed in servers that were supposed to be shipped from Taiwan to companies in Southeast Asia. The US Attorney's Office for the Southern District of New York has charged three people with illegally exporting NVIDIA GPUs to China in violation of the Export Control Reform Act. NVIDIA's chips have become a critical component in the rush to train and run increasingly complex artificial intelligence models, one the US has sought to manipulate with export controls and profit-sharing schemes with NVIDIA. The three people, Yih-Shyan Wally Liaw, Ruei-Tsang Steven Chang and Ting-Wei Willy Sun, two employees and one contractor working for US IT company Super Micro Computer, allegedly circumvented export control laws via a multi-step scheme that involved creating fake orders for servers with NVIDIA chips from Southeast Asian companies, that were then secretly sent to China. The plan involved paying a logistics company to repackage the servers in Taiwan, staging dummy servers to be inspected by Super Micro Computer's compliance team and falsifying records so Liaw, Chang and Sun's employer was unaware where the servers were actually being sent.