The Financial Times has recently released a report suggesting that during a three-month timeframe marked by rising export limitations, various channels facilitated the movement of $1 billion worth of Nvidia AI chips to China. This activity allegedly unfolded under the radar, highlighting potential market vulnerabilities.

According to the investigation, which scrutinized sales agreements, corporate documentation, and insights from individuals privy to the transactions, it was concluded that Nvidia’s B200 AI GPU was the most predominant item available in a burgeoning Chinese black market, often without Nvidia’s consent.

Furthermore, the report revealed that Chinese distributors from provinces like Gungdong, Zhejiang, and Anhui were purportedly dealing with multiple Nvidia AI chip models, including notable units like the B200, H100, and H200, in significant quantities.

The chips were marketed in racks approximately the size of large suitcases, including requisite components and software for integration into established data centers, with each rack priced at around $489,000, reflecting a noteworthy premium over comparable products in the U.S.

Despite these alarming developments, Nvidia has maintained that there is no evidence linking them to any illicit distribution, insisting they possess no knowledge regarding the unauthorized sales of their restricted product lines.