Business4 sources

Banned Nvidia Chips Installed at China Data Center Linked to Alice Huang

Bloomberg Technology · By Andy Lin, Mackenzie Hawkins & Kari Lindberg · 9h ago

The Brief · written from 4 sources

Bloomberg reports, based on documents it reviewed, that a Chinese company founded by Alice Huang procured smuggled AI chips installed at a Shanghai data center.
The data center is linked to Megaspeed International Pte, according to the same reporting.
Tom's Hardware, citing the same reporting, describes a smuggling operation it values at $7.5 billion and ties it to Shanghai fund manager Kang Wei.

Why it matters

The case shows that Nvidia AI GPUs sold under export restrictions can still reach Chinese data centers through intermediaries, which invites tighter scrutiny of chip sourcing, resellers and the cloud capacity that depends on them.

Who’s affected

Companies buying Nvidia AI GPUs through resellers or intermediaries
Data center operators and cloud providers with China-linked customers

A Chinese company founded by Alice Huang, the woman at the center of a controversy dogging Nvidia Corp., procured smuggled AI chips that were installed at a Shanghai data center with links to Megaspeed International Pte, according to documents reviewed by Bloomberg News.

Read the full story at bloomberg.com ↗