
The lengths people will go for Nvidia’s heavily sought-after Blackwell chips are staggering. Beyond lining up for hours outside tech stores, some individuals are resorting to smuggling.
Earlier this month, three men were taken into custody by authorities in Singapore for the alleged smuggling of Nvidia chips that are under U.S. export restrictions. Reports indicate that these individuals were part of a broader scheme involving transactions amounting to $390 million.
With suspicions arising about the true destination of the servers allegedly containing the restricted Blackwell chips, authorities have charged the men with fraud. They—one from China and two from Singapore—were recently granted bail by a Singaporean judge.
According to prosecutors, the suspect servers were purportedly acquired from manufacturers like Dell and Supermicro, then transferred to Malaysia. The intended final destination for these servers remains unclear.
This incident forms a part of a broader strategy by the Biden administration to enforce AI chip restrictions that limit exports to various foreign locations, aimed predominantly at China.
The upcoming court hearing for this fraud case is scheduled for May 2, while bail has been set at S$800,000 and S$600,000 for the two Singaporeans involved. Meanwhile, the Chinese defendant faces a S$1 million bail, under the condition of electronic monitoring if released.
All parties are barred from approaching border checkpoints or airports, as well as discussing the case outside court proceedings.