Banned Nvidia chips are being smuggled into China

Ana sayfa / News

Nvidia’s advanced AI chips continue to be sold in China through the black market, despite a US export ban. According to the Financial Times, more than $1 billion worth of Nvidia chips have reached China in the last three months, despite export controls tightened during the Trump administration.

Embargoed Nvidia chips being shipped to China

The most in-demand product in the US is the Nvidia B200, used by tech giants such as OpenAI, Google, and Meta. These chips, banned from sale to China by the US, are being supplied to Chinese data center suppliers on the black market and began being sold to local AI companies in May.

Export restrictions implemented by the Trump administration during the Biden administration had previously blocked the sale of Nvidia’s H20 model, which was specifically offered to China. However, this measure has directed Chinese buyers to the more powerful B200, H100, and H200 models, which are currently banned from sale. Vendors in various regions of China, including Guangdong, Zhejiang, and Anhui, have made hundreds of millions of dollars in illegal sales.

Nvidia stated in a statement regarding this situation that data centers built with unauthorized products are technically and financially inefficient. The company stated that it only supports products purchased through authorized sales channels and has no connection to illegal trade.

Southeast Asian countries play a critical role in illegal supply chains. Thailand, in particular, has become a point of access for Chinese companies to restricted products. The US Department of Commerce is working to expand export restrictions in Thailand and similar countries. These measures are expected to take effect around September 2025.

Nvidia B200 chips are supplied to China not only as individual processors but also as ready-to-use rack systems. Each rack unit contains eight B200 processors, software, and support components that enable direct connection to the data center.

The rack systems are the size of a large suitcase and weigh approximately 150 kilograms, including packaging. Market prices in China range from 3 million to 3.5 million yuan (about $489,000) for a shelf, about 50 percent higher than the average selling price of similar products in the United States.