US authorities have indicted executives of Supermicro in connection with a $2.5 billion smuggling ring that allegedly moved NVIDIA AI chips to China. The indictment claims the scheme used Thailand as a transit point to bypass US export restrictions.
Indictment details Thailand transit route
According to the indictment, more than $500 million worth of AI equipment was shipped between April and May 2025. The operation allegedly involved Supermicro using a Bangkok-based intermediary called OBON Corp to route NVIDIA H200 GPUs to Alibaba.
Alibaba has denied any involvement in the smuggling activities. A spokesperson for the Chinese company stated that Alibaba has no business relationship with Supermicro, OBON, or any third-party brokers mentioned in the indictment. The spokesperson also said Alibaba does not currently use and has never used any banned NVIDIA chips at its data centers.
NVIDIA has commented on the case through a spokesperson, stating that the company expects its ecosystem partners to adhere to strict compliance at every level. The spokesperson added that NVIDIA will continue working with the government to enforce the rules. The exact quantity of smuggled chips remains unclear, as the indictment only specifies the value of equipment moved over a two-month period.
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