Chips and Semiconductors

Chinese Network Smuggling Banned NVIDIA Chips: Allegations of Industrial Espionage and Involvement of Intermediary Companies

A Bloomberg report has revealed a complex network of Chinese companies that succeeded in smuggling advanced NVIDIA artificial intelligence chips banned in China, amid allegations of the involvement of a figure linked to the former CEO of NVIDIA in industrial espionage operations.

2026-11-13
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Chinese Network Smuggling Banned NVIDIA Chips: Allegations of Industrial Espionage and Involvement of Intermediary Companies

An investigative report published by Bloomberg has revealed the existence of an organized network of Chinese companies that managed to obtain advanced artificial intelligence chips from NVIDIA, which are subject to strict restrictions and are banned in China. The reports place "Alice Huang" at the heart of this network, amid American allegations that she is working on behalf of a Chinese intelligence agency in an industrial espionage operation targeting leaders of the American technology sector.

Smuggling Routes via Singapore

According to documents reviewed by the report, companies in Singapore were used as fronts to pass through the banned technology. Data indicated that H800 model chips were purchased through "Aperia Cloud Services," an authorized NVIDIA partner in Singapore. "Aperia" purchased 22 servers from Dell containing these chips, before Dell severed its relationship with the company in February 2025 due to concerns regarding the nature of these deals.

Connection to AI Infrastructure in China

The report tracked the presence of these devices in the records of "Shanghai Longteng Intelligent Computing," a company founded by Alice Huang a decade ago. The records included units produced by Super Micro Computer Inc equipped with NVIDIA chips of the H100 and H200 models, which are high-performance technologies that cannot be sold to Chinese companies without explicit authorization from the US government.

This equipment was also linked to the "Yangtze River Delta Project," a massive AI facility in Shanghai headed by "Kang Wei," who is referred to in reports as Alice Huang's husband and the person who introduced her to Jensen Huang, the former CEO of NVIDIA.

Allegations of Industrial Espionage

The allegations go beyond mere commercial smuggling; American officials believe that Alice Huang was recruited by Chinese intelligence to target Jensen Huang. The goal was to obtain information about American AI plans and to attempt to pressure Jensen Huang into convincing the US government to facilitate the export of more advanced chips to China. These developments come at a time when Jensen Huang is scheduled to testify before the US Congress.

Why Does This News Matter?

This incident illustrates the security and logistical loopholes facing US export controls, where companies in third countries (such as Singapore) are used as fronts to pass through sensitive technology. It also highlights the risks of direct industrial espionage targeting leaders of major semiconductor companies, which could lead to tightened international oversight of supply chains and changes in intellectual property protection strategies in the global AI sector.

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