"There is no crime that capital would not commit for a 300% profit" — Nvidia AI chips were smuggled into China

In the U.S., authorities dismantled a ring that was illegally supplying Nvidia H100 and H200 accelerators to China. The case unfolded on American soil, undermining the idea that third countries were doing most of the smuggling work.

Hao Global, a Texas-based company founded by an American of Chinese descent, bought the gear from Lenovo’s division in North Carolina while declaring it for U.S. use. The first shipment — 60 H100 units — moved through New York, Singapore, and Hong Kong before reaching Shenzhen. A second, larger consignment was rerouted through Canada after workers at an Atlanta warehouse relabeled the cargo as "Sandkyan adapters."

The operation collapsed when an embedded BIS agent intervened. The suspects walked into a sting while trying to repurchase the seized items for USD $1,000,000.

People following the case say it’s striking that such a tangled scheme was run from inside the U.S. Controls may tighten, yet this episode makes clear there are limits to how much enforcement alone can wipe out these channels.