04.12.2025
2 min
391
The US Department of Justice has announced the arrest of multiple individuals involved in a large-scale scheme to illegally export Nvidia H100 and H200 AI chips to China, bypassing US export control regulations. Authorities estimate the operation exceeded $160 million in value. This comes as the president is reversing a Biden-era policy that now allows China to import the Nvidia H200 AI chip from the US.
According to the DOJ, the smuggling scheme operated from late 2024 through mid-2025 as part of Operation Gatekeeper. The suspects allegedly acquired high-performance Nvidia GPUs through intermediaries and shell companies, falsifying end-user information to evade export restrictions.
Court documents describe a process involving:
the use of straw buyers in the United States,
wire transfers of tens of millions of dollars from China,
removal of original Nvidia labels and replacement with fake branding,
preparation of shipments for China and Hong Kong disguised as legitimate exports.
Investigators say the chips ultimately reached entities linked to advanced AI development.
Nvidia’s H100 and H200 GPUs are considered critical infrastructure for generative AI, high-performance computing, and military applications. As such, they are regulated under the US Export Control Reform Act (ECRA).
The takedown coincides with a broader policy shift, as the Trump administration moves toward partially easing export restrictions on Nvidia H200 chips for approved Chinese customers. Analysts warn that even licensed exports remain vulnerable to abuse through front companies and mislabeling schemes.
US authorities describe the case as a serious national security threat, emphasizing that control over advanced AI chips equates to control over technological, economic, and military power. The investigation highlights how access to AI hardware has become a frontline issue in global geopolitical competition.
