Advanced AI chips from Nvidia, valued at over US$1 billion, were reportedly smuggled into China following tightened US export restrictions, according to a report by the Financial Times.

The report claims that banned high-end B200 processors were sold on the black market in China, citing sales contracts and company filings.

These chips, restricted for sale in China, were allegedly distributed by firms in provinces such as Guangdong, Zhejiang, and Anhui.

In response, Nvidia said that using smuggled products for building data centers is technically and financially inefficient. The company supports only authorized products.

The US Department of Commerce, the White House, and the Thai government have not commented on the situation.

Reuters noted that it could not independently verify the Financial Times’ findings.

The report also indicated that Southeast Asian countries have become important markets for Chinese groups seeking restricted US chips.Industry experts mentioned that distributors in the region supplied processors like Nvidia’s H100 and H200, in addition to the B200.

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