US prosecutors are investigating a $2.5 billion smuggling case involving NVIDIA AI chips. The investigation targets a network that concealed the movement of high-performance hardware through a Bangkok-based Thai company named OBON. The probe covers activities spanning from the second quarter of 2024 to May 2026.
Supermicro co-founder Liao Yixian implicated and suspended following not guilty plea
The indictment specifically identifies OBON as the primary entity facilitating the illicit trade. Supermicro co-founder Liao Yixian is implicated in the scheme and has pleaded not guilty. Supermicro has suspended Liao from his position following the allegations.
The US Commerce Department issued a directive in August 2025 to halt chip and server shipments to OBON. This regulatory action aimed to stop the flow of restricted technology to the identified smuggling ring. The directive marked a significant escalation in enforcement efforts against the network.
NVIDIA has upgraded its global supply chain monitoring systems in response to the breach. The company now requires real-time reporting from the point of chip dispatch through to end logistics. This enhanced tracking mechanism seeks to prevent future unauthorized diversions of AI GPU servers.
NVIDIA has not confirmed the full scope of the investigation or the total volume of chips involved. The company continues to rely on its new monitoring protocols to secure its distribution channels.
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