Four indicted for smuggling Nvidia AI chips and supercomputers to China
Four people were indicted by the U.S. Department of Justice for allegedly conspiring to illegally export advanced Nvidia AI chips and supercomputers to China between 2023 and 2025, using false documentation and shell companies. The defendants reportedly received over $3.89 million from China and successfully exported 400 Nvidia A100 GPUs before law enforcement prevented further shipments.
What happened
The U.S. Department of Justice charged four people—two U.S. citizens and two Chinese nationals—with conspiring to illegally export Nvidia GPUs to China without required licenses between September 2023 and November 2025.
The defendants allegedly created fake contracts and provided false documentation to ship the chips through Malaysia and Thailand, concealing their true destination as China. They exported 400 Nvidia A100 GPUs to China between October 2024 and January 2025, and attempted to export 10 Hewlett Packard Enterprise supercomputers equipped with Nvidia H100 GPUs and 50 Nvidia H200 GPUs in two further shipments that law enforcement prevented.
Reported impact
The indictment alleges the defendants received over $3.89 million in wire transfers from China to fund the illegal export scheme. The chips were sought for Chinese AI applications, including military modernization and weapons design.
Index analysis
The case involved the use of shell companies—specifically Janford Realtor LLC in Tampa, Florida, which had never engaged in real estate—to purchase and export controlled GPUs. One defendant also supplied Nvidia GPUs through his Alabama-based electronics company.
Governance controls
U.S. export controls on advanced AI chips to China have required licenses since October 2022. The defendants violated these controls by misrepresenting the intended destination of the chips and failing to obtain required export licenses.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.